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Types of Annuities -
Combination (Split Annuity) |
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Combination (Split-Funded) Annuity
A contract by which the annuity owner "splits" their initial premium into two contracts. Part of the premium deposit goes into a fixed deferred annuity with a guaranteed interest rate for a given term, and the other part into an immediate annuity that pays an income for that same term. It is usually structured where the deferred annuity grows back to the total deposit originally invested, while receiving income from the immediate annuity throughout that time.
Features will vary by company and product. Please refer to
Glossary for definitions
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