Deferred Annuity

A deferred annuity starts paying out at a specified number of years after purchase, but no sooner than at least 1 year after purchase.

Third Party

The owner of an insurance policy and the insured are usually the same person. However, sometimes the policy owner is a different person. This is known as -Third Party

When someone other than the insured is the policyowner, that individual is considered a third party owner. This can occur when a parent insures a child, an employer insures an employee or a creditor insures someone that owes them money.

Tax Sheltered Annuity

A tax sheltered annuity (TSA) is a tax-deferred plan for employees of public schools. This means that contributors can allocate a portion of their gross wages each year to the tax-sheltered fund. TSAs or 403(b) plans are open to employees of tax-exempt organizations such as 1-12 public schools, colleges, universities, libraries, charities and churches. The money grows in the plan until it is withdrawn, likely at retirement, after 59 1/2 years or after losing a job, and is then taxed as ordinary income at the lower applicable tax rate. 

Two Tier Annuity

A two-tier annuity is an investment product that requires you to invest an up-front sum in exchange for a promise of future payments. The two tiers comes from the redemption options the annuity offers. If you pull your money out over time, you earn a higher return that if you take your money out in a single lump sum. Over time, the penalty for choosing the latter grows.