What Is a Deferred Income Annuity (DIA)?
The Annuity Man
Deferred Income Annuities (DIAs) are a simplistic transfer of risk solution for lifetime income guarantees with payments starting at a future date.
Deferred Income Annuities (DIAs) should be used for future income planning. Deferred Income Annuities (DIAs) are the cousins of Single Premium Immediate Annuities (SPIAs). They are the same structure. The only difference is when you start the income stream. DIA income starts as soon as 13 months from the contract issue date to as far out as 40 years.
DIAs have no annual fees. No moving parts. No market attachments. They are straight transfer of risk strategies used to contractually solve for "Income Later" needs. Deferred Income Annuity (DIA) quotes should be shopped with all carriers to find the highest contractual guarantee for your specific situation. DIA quotes are also "like a gallon of milk" because they expire every 7 to 10 days unless you lock in that guarantee by starting the application process.
Deferred Income Annuities (DIAs) also have a sister product called Qualified Longevity Annuity Contracts (QLACs). The only difference is that QLACs can only be used in qualified (i.e. Traditional IRA) accounts with income starting between ages 71 and 85. QLAC income can be deferred out as far as age 85, but has to start then.
DIA quotes can be customized to fit your specific situation and goals. Single Life, Joint Life, Period Certain, or a combination of these can be structured to provide the contractual guarantee needed for you and your family.
You can contact Stan if you have any questions or want to see quotes on your specific situation.