Acquisition costs that are carried forward to a subsequent accounting period in order to match such expenses with the income generated.
Insurance Encyclopedia
Deferred Acquisition Costs (DAC)
A deductible from unearned premium, as they become earned, for acquisition and commission costs.
Deferred annuity
1. Stipulation in an annuity contract that provides for income payments to begin at some future date such as a specific number of years or at a specified age. 2. Annuity contract in which premiums are accumulated at interest but the annuity payment period is postponed (deferred) for one or more periods.
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UK: Whereby the annuity payments are deferred for a period of time, often to coincide with retirement. Compare with immediate annuities where the annuity payments commence immediately.
Deferred annuity (Annuity)
An annuity in which payments are designated to begin at a later date, as opposed to one where payments begin upon purchase. See Annuity .
Deferred annuity purchase
See: Age 75 Rule.
Deferred care
Needed health care (medical or dental) that is delayed because the patient does not have insurance or is not able to pay for services.
Deferred compensation
Rescheduling of an employee’s compensation to some future age or date. The employee agrees to receive payment at a later date for work performed before that date, for the purpose of retirement only or to provide a death benefit to the beneficiary of a pension plan.
Deferred compensation (Pensions)
A qualified or non-qualified plan wherein a key employee is able to defer current payments until death, disability, or retirement. This must be agreed upon with the employer in a written statement.
deferred compensation administrator (DCA)
Type of company that provides administrative and other services through a variety of situations such as retirement planning administration, third-party administration, self-insured plans, compensation planning, salary survey administration, and workers’ compensation claims administration.
Deferred compensation plan
Type of plan created by an employer that gives benefits to employees at a later date or after their retirement. The money is not taxed until the later date, usually at retirement, when income is reduced and the deferred funds can then be taxed at a lower rate.