A deferred annuity has an accumulation period, where you pay the premium towards your plan. You can then start receiving income from the plan at a later date, as chosen by you at the time of the purchase of the plan. An immediate annuity plan offers immediate payouts right after buying the plan. There is no accumulation period in this type of annuity. You can pay a lump sum amount to purchase the plan and receive income as early as the month following the date of purchase.