What Are Deferred Annuities? 
There are two types of annuities . An immediate annuity is one where the deposit is converted to a lifetime income -LRB- or some variation -RRB- immediately . A deferred annuity provides that annuity benefits may commence at a later date . The deferred annuity has two phases ; the accumulation phase and the distribution phase . Further questions about deferred annuities should reference which phase of the annuity is of concern . 