Deferred Income Annuities (DIAs) pros and cons
The Annuity Man
Deferred Income Annuities (DIAs) are an efficient, no annual fee, transfer of risk future pension product that is becoming more popular for people looking for lifetime income guarantees starting at a future date. The income stream is "annuitized" and the time of your choosing, and is a combination of return of principal plus interest.
Deferred Income Annuities (DIAs) are future lifetime income pension products and are the cousins of Single Premium Immediate Annuities (SPIAs). DIA income can start as soon as 13 months from the contract issue date to as far out as 40+ years, depending on the carrier. DIA guaranteed payments are primarily based on your life expectancy at the time you turn on the income stream. Interest rates play a secondary role to the surprise of most uninformed annuity consumers.
Deferred Income Annuities (DIAs) have the same structure as a Single Premium Immediate Annuity (SPIA). No annual fees. No moving parts. No market attachments. No volatility. Just a straight transfer of risk contractual guarantee, and the policy can be customized to achieve your specific income and legacy goals. SPIAs were introduced in the Roman Times to create pension plans for the dutiful Roman soldiers. The word "annua" is Latin for payment, and is where the word "annuity" originates.
DIAs are commodity products and should be quoted with all carriers to find the highest contractual guarantee for your specific situation. DIA quotes last 7 to 10 days, and have to be requoted unless locked in during the application process.
You can contact Stan if you have any questions or want to see quotes on your specific situation.