Providing for honest things, not only in the sight of the Lord, but also in the sight of men.

We have provided below a brief, general description of some commonly available types of annuities. Note that annuity terms may vary from company to company, from state to state, and even between forms used by the same company. Always consult your annuity contract for exact terms that apply to your situation.

Flexible-Premium Deferred Annuities (FPDA's)

The flexible-premium deferred annuity allows premiums to be paid as frequently or as infrequently as the contract owner wishes. The amount of each premium may also vary. If a premium payment is made, it usually must equal or exceed a company-set minimum premium. The contract will usually pay a competitive interest rate in excess of the minimum guaranteed interest rate. An initial guaranteed interest rate is often provided for some initial period (say, one year). The current interest rate credited to the annuity is changed periodically by the company based on its investment earnings and expenses.

Single-Premium Deferred Annuities (SPDA's)

The single-premium deferred annuity allows for one premium payment at the inception of the contract. The annuity usually provides for a minimum guaranteed rate of interest for the duration of the contract. The contract will usually pay a competitive interest rate in excess of the minimum. An initial guaranteed interest rate is often provided for some initial period (say, one year). The current interest rate credited to the annuity is changed periodically by the company based on its investment earnings and expenses.

Single-Premium Immediate Annuities (SPIA's)

The single-premium immediate annuity is very similar to the single-premium deferred annuity, except that benefits are paid out immediately (e.g., one month) after the premium is paid. The immediate annuity is generally more appropriate for older persons who want to convert accumulated wealth into a guaranteed income that begins right away.