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What are the different types of deferred annuities? |
| A. |
The two most common deferred annuities are fixed annuities and variable annuities. |
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Fixed deferred annuity |
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Fixed deferred annuities guarantee a fixed interest rate for a set time period. The earnings are tax deferred until withdrawn. |
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Variable deferred annuity |
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An annuity under which the policy's premium is invested in a variety of investment divisions and the accumulated value fluctuates with the performance of the investment divisions. |
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