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Growth Now, Income Later

Flexible Premium Deferred Annuity (FPDA)

A FPDA is contract with an insurance company. The contract term can be anywhere from 5 to 10 years. During that time, the interest rate that is credited to the contract each year is set by the insurance company. When you initially purchase this type of contract, the interest rate for the first and future years are set and guaranteed.

If you cancel the contract before the end of the term, a charge will occur. Typically the charge decreases for each year that you hold the contract. During the term of the contract, you may access a certain percent of the contract value without a charge. You also have the option of turning your account value into a stream of guaranteed income payments (See Start Guaranteed Income Now), without incurring a charge.

After the contract period has expired, you could leave your funds on deposit and earn interest or you could remove any or all of your funds without charge.

So as not to incur a charge and to help your account to grow, the amount that you deposit into this kind of contract should be an amount that you do not plan to access during the contract period.

For more information on Flexible Premium Deferred Annuities, take a look at the Growth Now, Income Later section of the the Additional Information & Resources page.

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For more information or to start designing your income plan, call our trained annuity specialists on our Annuity Help Desk from 8 a.m. – 6 p.m. Eastern or email us at

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Important Disclosures: All guarantees are subject to the claims-paying ability of the issuing insurance company. USI receives a percentage of the revenue that is paid to Ash Brokerage by the insurance companies in connection with annuity placements. The above links are provided for your information only. Please note that content located on third party web sites is subject to change.