Flexible Premium Deferred Variable Annuities
How Do Flexible Premium Deferred Annities Work?
There are some characteristics of flexible premium annuity that we need to understand. There is no fixed or mandated amount that is to be paid by the contract holder.
However, the company does prescribe a minimum amount that needs to be paid on an annual basis to keep the annuity valid. The returns are calculated on the basis of cash balance.
Thus your returns depend upon how much you invest per month or per premium installment.
Rule of thumb is, invest the maximum in the initial premium installments