How Does A Single Premium Deferred Annuity Work? 
The answer lies within your question . Annuities are , by their construction , methods of accumulating assets , and methods of distributing assets . It is that simple . A single premium annuity is where no stream of regular payments is contemplated . In other words , you create your accumulation in the annuity with a single payment . The `` deferred '' part explains that the annuity will have a payout at a later time . So , a single premium deferred annuity is an annuity that expects only one large lump payment and that time will pass before the funds will be distributed . The time that passes could be a year or fifty but the payout will be later . 