3 Replies to “Please tell me what is the difference between deferred annuity and immediate annuity option in insurance?”

  1. In Deferred annuity option, the policy holder pays the Insurance premium till he gets retired but gets the pension monthly after his retirement. And in immediate annuity option, the insured person pays the lump sum money and can start taking pension from the next month.


  2. In Immediate annuity option, Pension starts immediately.
    In Deferred annuity, pension is deferred ie., postponed. Pension starts after a particular period say 5, 10 or 15 years.


  3. Deferred annuity means annuity payment commence after a certain deferment period which may be a fixed term or after attaining a certain age . whereas in the immediate annuity the annuity payment commence immediatly(from 1st of next month) after sum deposited for the insurance





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