A premium payment method sometimes offered in connection with annuities and with some types of life insurance that allows the contract owner or policyowner to alter the amount and the frequency of payments, within specified boundaries defined by the insurer and the law.
must be on a Deferred Payment annuity. With this type of annuity, you determine an initial premium to invest. Once that is paid, the annuity allows periodic additional contributions of which the investor chooses the time and amount. When it comes time to annuitize, the payout depends on the total of the initial premium plus additional contributions to the annuity.