Period-certain annuity

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Period-certain annuity

An annuity that provides guaranteed payments to an annuitant for a specified period of time.

Period-Certain Annuity

An annuity in which the annuitant selects a certain number of years during which he/she will receive payments. For example, an annuitant may elect to receive annuity payment each month for 20 years. This allows the annuitant higher payments each month, but it is nevertheless less common than life annuities, which provide payments for the remainder of the annuitant's life. Using period-certain annuities as retirement packages may appeal to persons who do not expect to live the full term of the annuity and/or persons who have another source of income (such as another annuity) in retirement.
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The new Symetra Income Builder Annuity, a 10-year period certain annuity, features guaranteed payments for 10 years and an automatic one-time payment increase beginning in payment year six.
A's excess retirement accumulation is determined as follows: $2,000,000 minus the greater of (1) $600,000 or (2) the present value of a period certain annuity of $148,500 a year for 16 years (A's life expectancy).
Based on various scenarios, customers select a comprehensive income strategy that best suits their goals, then roll over the appropriate amount of defined contribution and IRA assets into a period certain annuity.