How is a flexible premium annuity typically funded?

A flexible premium annuity is designed to accommodate contributions made at varying amounts and intervals, which provides consumers with greater control over their investment. The unique feature of a flexible premium annuity allows investors to make regular payments based on their financial situations and goals.

This means that contributors can choose to make payments whenever they wish, and they can adjust the amount they contribute, whether that means depositing smaller amounts over time or making larger contributions when able. This adaptability makes flexible premium annuities an attractive option for individuals looking to save for retirement or other financial goals, as they can tailor their contributions to fit their personal budgets and circumstances.

In contrast, the alternatives presented focus on more rigid funding structures. A one-time high payment restricts the process to a single contribution, limiting flexibility. Variable lump sum contributions may imply a lack of consistent payment schedules. Lastly, restricting funding solely to company retirement plans does not reflect the broader application of flexible premium annuities, which can be funded independently of such plans.