What Are Contingent Deferred Annuities? 
Contingent deferred annuities are annuities with contingent deferred sales charges . This sales charge is a surrender charge that represents the costs incurred by the insurer to issue the annuity and is amortized -LRB- or spread out -RRB- over the course of several years -- generally between 5 and 15 years . Deferred can also refer to the fact that annuity is not an immediate annuity , meaning it will not pay an immediate income stream , but rather can be left to accumulate interest to increase the value of the annuity . 