What is a defining feature of a deferred annuity?

A defining feature of a deferred annuity is that payments are postponed until a future date. This means that after investing in a deferred annuity, the individual does not receive any payouts right away; instead, the insurance company holds onto the funds and grows them over time. The individual can choose to begin receiving regular income payments at a later date, which can provide a source of retirement income.

Deferred annuities often include different growth options, such as fixed interest rates or variable investment options, allowing the individual to accumulate value before they start taking distributions. This structure is particularly beneficial for individuals looking to save for retirement and bridge the gap between their working years and retirement years.

The other options refer to features of different types of annuities or payment structures that do not align with the defining characteristic of a deferred annuity.