[D020]

deferred annuity
A type of annuity where premiums are paid on an ongoing basis, but the benefit payments are deferred until a later date. The annuity can be scheduled to begin on a specific date or when a set age of the recipient is attained. A common example is an annuity that has been purchased for a child to pay for the child's college education. Payments are ongoing, and the payout may be scheduled to begin when the child turns 18.