7.3.2 Date Income Payments Begin
Depending upon the contract, annuity payments can begin immediately (immediate annuities), or they can be deferred to a future date (deferred annuities).
Immediate Annuities
Immediate annuities can only be funded using the single premium payment method, and the first income payment is typically made one month from the date of annuity purchase. These annuities are specifically designed for those customers who need to receive a specific amount of money each month. These can be used as the sole source of income or as an income supplement. Payments may be made depending upon the need of the annuitant - on a monthly, quarterly, or annual basis.
Deferred Annuities
Deferred annuities can be funded through either the single premium payment (single premium deferred annuities) method or through periodic premium payments (flexible premium deferred annuities) since income payments won't start until some future time.
Can the variable annuity contain such features as waiver of premium or term insurance riders?
