Variable annuities offer either a Flexible Premium or Single Premium payment plan. In addition, a variable life may have a Modified Premium, or Fixed Premium payment plan, depending on whether the contract is a VL or VUL.
Benefits
Investors will want to study a variable product's premium type to understand how it could impact the overall investment. Various premium types are more or less advantageous, depending on an investor's needs.
Origin
This information is taken directly from the contract's prospectus.
For the Pros
About Single Premiums
This is perhaps the most investment-oriented payment plan, because it funds a contract with the first, and only, premium. Some single plans, however, will allow subsequent contributions to be made, but only within strict guidelines.