It depends on the type of deferred annuity contract. Some deferred annuities take only one premium payment, while others allow a series of payments over time.
The NAIC Buyer’s Guide explains that a single premium annuity is funded with one payment to the insurance company. A multiple premium annuity is funded with a series of payments. Within multiple premium annuities, one kind is a flexible premium contract, which lets you pay as much premium as you want, whenever you want, within set limits. Another kind is a scheduled premium annuity, where the contract spells out your payments and how often you’ll make them.
That means you cannot assume every deferred annuity lets you add money later. Whether you can do so depends on the contract terms and the type of annuity you buy. Before buying, review the contract and disclosure carefully and ask whether the annuity is single premium or multiple premium, and if multiple premium, whether it is flexible or scheduled.
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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.
Source: © 2025 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.
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