Woman’s Life Insurance Society

Fixed Deferred Annuities

What is a deferred annuity?

It may be helpful to first understand what it is not. A deferred annuity is not life insurance. Nor is it a savings account or savings certificate. It is not intended to meet short term goals. A deferred annuity is a long-term savings plan that allows for your premiums (deposits), plus the interest credited, to be accumulated on a tax-deferred basis. You may pay a one-time amount, make scheduled systematic payments, or make payments on an intermittent basis.

Money from an inheritance, from life insurance proceeds, or from the sale of property or a business may be paid as premium into a deferred annuity in order to accumulate funds on a tax-deferred basis for retirement. You may decide to use money earmarked for retirement from other sources such as maturing certificates of deposit or mutual funds. Many of the features of deferred annuity plans give annuities advantages over other savings plans such as savings accounts and certificates of deposit.

The usual purpose of a deferred annuity is to accumulate value for a retirement income that is typically received as a monthly payment to supplement retirement income from other sources such as Social Security. Income from the annuity value may be taken for life or a selected number of years. This plan is called an annuity both during the period of accumulation of funds and during the pay-out period. Deferred annuities may be either IRA plans or non-IRA plans.

What is an IRA?

"IRA" stands for Individual Retirement Arrangement. The two types of IRA's are "Roth" and "traditional." Federal law defines who may buy each type of IRA and provides IRA's with tax favored status with specific tax benefits depending on the type of IRA purchased. IRA's also have other special limits and considerations.

Why would a deferred annuity be right for me?

Everyone has some special dreams for their retirement and a wish to maintain a certain standard of living. Income from a deferred annuity may be the principal source of retirement income or may supplement income received from Social Security and pensions. Contributing to a deferred annuity is an important way for you to save money for a secure retirement. It can mean that dreams such as travel, continuing education, hobbies and helping grandchildren may be realized.

In our changing economy, fewer of us can rely on pension plans and Social Security to provide more than a small portion of the retirement income that most of us need and expect. There is a growing need for women to take personal responsibility and save for retirement, and a deferred annuity is an advantageous way to do so.

How can I afford a deferred annuity now?

The amount of money you save for your financial independence in retirement needs to be considered in light of your current overall income and expenses and your ultimate retirement goals. However, you do not need to have a large initial sum of money to purchase a deferred annuity.

Woman’s Life makes it easy to budget for an annuity by allowing you to make systematic premium deposits of an affordable amount on a regular basis. Because of compound interest and tax deferral, an annuity purchased at a young age can build an impressive accumulated value, even if the initial premium amount is small. Since the premium amount is flexible, you may budget for larger premium contributions as your personal income increases. You may request that your annuity premiums be set up for automatic withdrawals from your checking or savings account on a monthly basis. If you would prefer to be billed instead, you may pay by check annually, semiannually or quarterly. Credit card payment is available in some states for automatic or billed premium payments.

With these easy premium options, and with the importance of saving for retirement, you may want to ask yourself "How can I afford not to have an annuity?" Because Woman’s Life is so convinced that annuities play a very important role in financial security for women we offer a variety of attractive annuity plans for members.

Common Features of Woman’s Life Deferred Annuity Plans

  • Annuity plans may be purchased as IRA’s or as non-IRA plans. Non-IRA plans are generally available from ages 0–85 because these plans are appropriate for many adults and, in some limited circumstances, for children. Traditional IRA's are issued from ages 18–85, but only rollover amounts are accepted over age 69. Roth IRA's are issued at ages 18–85.
  • Contributions to a Woman’s Life annuity plan may be made as a single lump-sum premium payment (subject to plan minimums), as regularly scheduled deposits, or on an intermittent basis depending on the plan selected.
  • Deferred annuities are designed as long-term retirement plans; however, your money is accessible if you need it prior to retirement. You may take a portion of the money through a withdrawal or by surrendering the annuity. Withdrawals may be distributed on a monthly basis or as a lump sum. Surrender terminates the annuity.
  • Withdrawal and surrender charges are applied for the first 5, 8, or 10 years depending on the plan you choose. The withdrawal charge is based on a percentage of the withdrawal. The surrender charge is based on a percentage of the accumulated value. These percentages decrease over the surrender charge period. But the money available to you will never be less than the total amount of premium paid minus any previous withdrawals. This means that your principal is secure. Withdrawal or surrender before age 59 ½ may result in a 10% federal tax penalty in addition to the withdrawal or surrender charge.
  • After the first year you can withdraw as much as 10% of the accumulated value each year without charge by Woman’s Life. The federal tax penalty may still apply if you make a withdrawal before age 59 ½.
  • Withdrawal and surrender charges are waived if you or your spouse are confined to a nursing home for more than thirty days, or have a terminal illness with less than twelve months’ life expectancy.
  • After the first year, withdrawal and surrender charges are waived if you decide to begin receiving payments under a life income option.
  • Your savings grow due to compound interest and your earnings are not taxed until Woman’s Life makes payments to you.
  • Woman’s Life guarantees a minimum interest rate of 1%. The actual interest rates may go up or down and the method of crediting interest varies according to the plan you select. Woman’s Life reviews all rates periodically.
  • There are no front-end loads or administrative charges to dilute your earnings.

Woman’s Life Offers Four Fixed Deferred Annuity Plans

For more information, request a free, no obligation needs analysis with a Woman’s Life representative.


Woman’s Life deferred annuities are not available in all states. Current interest rates are not guaranteed and could go up or down. However, the current interest rate can never go below the guaranteed minimum 1% rate. Distribution prior to age 59 ½ may be subject to 10% federal tax penalty. A Woman’s Life deferred annuity is not FDIC insured, nor is it insured by any other agency of the United States. It is not a bank deposit. It is not guaranteed by a bank or any bank affiliate. It may lose value. Nursing home waiver is not available in NJ, NY, or PA. Terminal illness waiver is not available in NJ or NY.