Options for Paying Premiums

Last updated: October 7, 2015

Single Premium or Multiple Premium Annuities

Annuity premiums can be paid in either:

           A) One payment for a single premium annuity

                                                        Or

           B) In a series of payments for a multiple premium annuity

Single Premium:

For example, when you retire, you may choose to move a lump sum from a pension plan to an annuity in order to collect monthly payments from it. This would be considered a single premium annuity.

Multiple Premium:

Conversely, if you decide at a young age to begin saving for retirement, you might choose to purchase an annuity and make smaller monthly payments of $200 into the plan over a period of 20 years. This would be an example of a multiple premium annuity.

  • Multiple premium annuity payments can be made either on a regularly scheduled basis, or in flexible payments, allowing you to pay as much premium as you want within set limits.

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