How a Deferred Income Annuity (DIA) works
The Annuity Man
Deferred Income Annuities (DIAs) are the same structure as a Single Premium Immediate Annuity (SPIA). No moving parts. No annual fees. No market attachments. The only difference between a SPIA and a DIA is the income start date. SPIAs can have income start as soon as 30 days from the policy issue date and deferred for up to one year. DIAs can have income start as soon as 13 months from the policy issue date and deferred for as long as 40+ years (with some carriers).
Deferred Income Annuity (DIA) contractual income payments are primarily based on your life expectancy ("life expectancies" if joint) at the time you choose to turn on the lifetime income stream. Interest rates play a secondary role. DIA income, and all annuity lifetime income regardless of type, is a combination of return of principal plus interest.
All annuities, including Deferred Income Annuities (DIAs), are commodity products and should be shopped with all carriers to find the highest contractual guarantee for your specific situation. Annuity quotes are like a gallon of milk and expire every 7 to 10 days, so you have to re-quote the numbers unless you lock in that specific contractual guarantee during the application process. Currently, there are less than 30 carriers that offer Deferred Income Annuities (DIAs).
You can contact Stan The Annuity Man if you have any questions or want to see specific Deferred Income Annuity (DIA) quotes or other annuity type quotes for your specific situation...or to view a live feed of the best MYGA fixed rates for your state of residence.