The Difference Between Ordinary Annuity and Annuity Due

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding the Differences: Ordinary Annuity vs. Annuity Due

When planning your financial future, understanding the nuances of different annuity types can make a significant difference. This section breaks down the key differences, common uses, advantages, and disadvantages of ordinary annuities and annuities due to help you make informed decisions.

Payment Timing

  • Ordinary Annuity: Payments are made at the end of each period, providing a predictable income stream.
  • Annuity Due: Payments are made at the beginning of each period, offering immediate access to funds.

Common Uses


  • Ordinary Annuity: Easier to understand and manage, generally more affordable.
  • Annuity Due: Provides immediate income that is adaptable to changing financial needs.


  • Ordinary Annuity: This does not provide immediate access to funds, which might not suit urgent financial needs.
  • Annuity Due: Typically comes at a higher cost compared to ordinary annuities.
FeatureOrdinary AnnuityAnnuity Due
Payment TimingPayments are made at the end of each period.Payments are made at the beginning of each period.
Common UseOften used for retirement annuities, life insurance annuities, and endowments.Common in business annuities, estate planning, and charitable gift annuities.
AdvantagesProvides immediate income and more flexibility for changing needs.Typically, it is more expensive than other annuity types.
DisadvantagesProvides immediate income and more flexibility for changing needs.Typically more expensive than other annuity types.
Annuity Due Vs Ordinary Annuity

How We Can Help

At The Annuity Expert, we understand that navigating the complexities of annuities can be daunting. Whether you’re planning for retirement, managing an estate, or looking to secure your financial future, our expertise as an insurance agency, annuity broker, and retirement planner with over 15 years of experience ensures you get the best solutions at the lowest costs.

Core Problem: Choosing the right annuity that aligns with your financial goals can be overwhelming.

Symptoms: Confusion about payment timings, uncertainty about which annuity suits your needs, and anxiety about potential costs.

Emotional Impact: This confusion can lead to stress, fear of making the wrong decision, and a sense of insecurity about your financial future.

We believe in finding the best solutions tailored to your unique needs. Our personalized approach ensures that you feel valued and understood, providing peace of mind and confidence in your financial planning decisions.

Ordinary Annuity Vs Annuity Due

What We Recommend

Step 1: Initial Consultation

  • What Happens: We start with a detailed consultation to understand your financial goals and needs.
  • Main Benefit: This helps us tailor our recommendations to your unique situation, ensuring you get the best possible advice.

Step 2: Customized Annuity Plan

  • What Happens: Based on the consultation, we develop a personalized annuity plan that aligns with your financial objectives.
  • Main Benefit: You receive a plan that’s specifically designed for your needs, maximizing your benefits and minimizing costs.

Step 3: Implementation and Ongoing Support

  • What Happens: We assist you in implementing the chosen annuity plan and provide continuous support to adapt to any changes in your financial situation.
  • Main Benefit: This ensures you stay on track with your financial goals, providing ongoing peace of mind and financial security.

Features and Benefits:

  • Personalized Advice: Tailored recommendations based on your unique needs, ensuring optimal financial outcomes.
  • Expertise: Leverage our 15 years of experience to make informed decisions.
  • Ongoing Support: Continuous guidance to adapt to changes, ensuring long-term success.
  • Transparency: Clear explanations and no hidden costs, building trust and confidence.

Common Objections:

  • Cost Concerns: We offer competitive rates and work to find the most cost-effective solutions for you.
  • Complexity: Our expert team simplifies the process, making it easy to understand and manage.

Not working with us means missing out on tailored advice and expert support, potentially leading to suboptimal financial decisions. However, partnering with The Annuity Expert ensures a secure financial future, personalized guidance, and ongoing peace of mind. You’ll experience a sense of relief, confidence, and satisfaction knowing your financial future is in expert hands.

Contact us today for free advice or a quote, and take the first step towards securing your financial future with confidence.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top