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What is the difference between an immediate and a deferred annuity?

Last updated: October 23, 2026

Quick Answer

Some annuities begin paying income to you soon after you buy it (an immediate annuity). Others begin at some later date you choose (a deferred annuity).

With an immediate annuity, income payments start no later than one year after you pay the premium. The income payments from a deferred annuity often start many years later.
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What is the difference between an immediate and a deferred annuity?

Some annuities begin paying income to you soon after you buy it (an immediate annuity). Others begin at some later date you choose (a deferred annuity).

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Educational content provided by Jeffrey Scott McLeod, LUTC, National Insurance Producer License #558629. This is for informational purposes only and is not a recommendation to buy or sell any annuity. Guarantees are subject to the claims-paying ability of the issuing insurance company. Always consult your own advisor and read the full NAIC Buyer’s Guide. For residents of your state. Jeffrey Scott McLeod, LUTC — National Producer #558629. Questions? Contact Jeff@AnnuitiesExplained.org.