What Is Deferred Annuities? 
Deferred annuities are annuities that do not provide immediate income . One places money into these annuities by paying a premium and the that premium becomes cash surrender value in the annuity . The cash value then accumulates at an interest rate specified within the contract . The contract owner will have the option to turn the cash into a guaranteed income stream at a later date , or surrender the annuity for it 's accumulated cash value . 