annuity certain

Annuity certain

An annuity that pays a specific amount on a monthly basis for a set amount 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.

annuity certain

An annuity that provides a fixed number of payments. If the annuitant dies prior to the completion of the contract, payments continue to the annuitant's designated beneficiary.
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References in periodicals archive ?
annuity certain, life: An annuity payable for a specified minimum number of periods or, if longer, for as long as the annuitant lives; a combination of an annuity certain and a life annuity.
Do you know these 13 annuity terms?
b) An annuity certain involves payment of a fixed amount or sum without regard to the life-expectancy of the annuitant or annuitants.
Annuities
For example, assume that a contract holder purchases an annuity for $100,000 and elects an annuity certain paying $1,200 per month for 10 years.
Taxation of annuities

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