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Life with Guaranteed Term

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Life with Guaranteed Term
A type of annuity where the annuitant receives income payments from the annuity for the rest of his life and receives income for a certain number of years even if he dies before that time expires. For example, a person may purchase a life with guaranteed term annuity where he receives $2,000 per month for the remainder of one's life with a guarantee that payments will continue to his survivors for 20 years, regardless of when he dies. That is, the annuitant (or his survivors) will receive $2,000 per month for 20 years or the remainder of the annuitant's life, whichever is longer. This protects the annuitant's survivors from financial hardship in the event of an early death, but these annuities often come with smaller monthly payments.


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