Term Certain Annuity

(redirected from Certain Annuities)

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.
Mentioned in ?
References in periodicals archive ?
The three bills that passed both houses of the legislature are: S.2525-B (Seward)/A.7152-A (Otis) which would provide people who own certain annuities with the option to automatically reinvest policyholder dividend distributions; S.2114-B (Seward)/A.7584-B (Crespo) which would refine the long-term care trigger to provide more New Yorkers who own certain life products with the ability to use existing benefits to cover long-term care expenses; and S.2095-A (Seward)/A.7531-A (Kavanagh) which would authorize domestic mutual life insurance companies to offer alternate methods for voting in uncontested board elections and receive voting materials electronically.
Department of Labor Rule - On April 6, the Department of Labor (DOL) issued the final version of its fiduciary rule that will impose additional requirements on the sale of certain annuities to retirement accounts, including IRAs.
"Congress created a safe harbor pursuant to which certain annuities are not considered resources for purposes of Medicaid eligibility."
In a simulation study, Hu and Scott (2007) find that period certain annuities are preferred to standard annuities from a mental accounting perspective.
In a report issued Tuesday, Warren said the responses from the firms "reveal a widespread practice of offering agents kickbacks in exchange for promoting certain annuities" and other products, and that "such kickbacks are effectively concealed from customers." She said 13 of the 15 responded that they did provide "kickbacks directly to agents, indirectly through third party payments, or both."
In New York, however, New York State Insurance Department Regulation 187 (11 NYCRR 224), which became effective on June 30, 2011, does not require that insurance agents take a four-hour general course on annuities, but it does require that insurance agents take individual, product-specific training before recommending certain annuities to clients.
The lawsuit claims the insurers are liable to policyholders with certain annuities or life insurance policies for fraud and breach of duty because the insurers invested with so-called Madoff feeder funds.
Period certain annuities promise to make payments for a stipulated period, such as 5, 10, or 20 years, or for the annuitant's life, whichever is longer.
Perhaps the time has come for life insurers to consider reducing fees on certain annuities, such as variable immediate annuities, with the reduction funded by lower distribution costs.
insurance companies should consider taking the position that certain annuities payments should be sourced based on the residence of the recipient of the payments.
These investments include mortgage-backed securities, some municipal bonds and certain annuities.