Term Certain Annuity

Term Certain Annuity

An annuity that makes payments (either monthly or in a lump sum) to the annuitant only for a certain period of time. A term certain annuity guarantees these payments for the term but ceases payments if the annuitant is still alive when the policy expires. While these may be a useful part of a larger retirement plan, term certain annuities could leave the annuitant with no income at all if they form the entirety of one's retirement. See also: Life Annuity.
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Assets: His retirement assets: $775,000; Her retirement assets: $248,000; After-tax assets: $185,000; he has term certain annuity income of $11,000 a year, which will expire in 10 years.
He retains a 10-year $25,000 term certain annuity interest, with no reversionary interest.
Under the Plan, the Judge invested in a joint life for a term certain annuity from MetLife with the entire balance of $612,231.