A deferred annuity is funded by either a single deposit or a series of deposits, and has two distinct phases: the 'deferral' phase, during, which time your money can accumulate on a tax-deferred basis, and the 'income' phase, when your contract values are converted into a stream of income.

A deferred annuity may be appropriate if you want to:

• set aside money that can be used to provide a stream of income after you retire.
• save for retirement gradually, without contribution limits and accumulate funds on a tax-deferred basis.
• secure a guaranteed income that you will begin receiving at some point in the future.

There are two basic types of deferred annuity options — fixed and variable.

Deferred Fixed Annuity
A deferred fixed annuity has a rate of return that is set and guaranteed for a specific time by the insurance company. This type of annuity may appeal to you if you have a more conservative approach to retirement or are looking for a vehicle to serve as a conservative portion of your retirement portfolio.

Features of a deferred fixed annuity:

• Tax-deferred growth
• Fixed interest rate, with safety of principal
• Death benefit for your beneficiaries

Deferred Variable Annuity
A deferred variable annuity is a long-term investment that has a rate of return based on investments you choose. Variable annuities typically offer numerous investment options, can help diversify a retirement portfolio, and can be allocated according to your risk tolerance level. The performance of variable funds is not guaranteed and can fluctuate.

Features of a deferred variable annuity:

• Tax-deferred growth
• Professional fund management and asset diversification
• Tax-free transfers between investment options
• Death benefit for your beneficiaries

Because variable annuities are investment products, they are sold by prospectus, which will be provided to you by your financial representative.