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Deferred Annuity

A deferred annuity is a contract available exclusively through a life insurance company. Unlike traditional annuities, a deferred annuity does not require the owner to start the income phase immediately. The owner can remain in the accumulation phase, with the intent to increase their capital base for future income. In fact, a deferred annuity does allow for both the accumulation phase, and income phase at the same time. This flexibility can be ideal in certain situations. In Canada, deferred annuities are commonly known as Segregated Funds.

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