Term Certain Annuity

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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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As part of the transaction, MassMutual and MetLife have also agreed to enter into a product development agreement under which MetLife's US Retail business will be the exclusive developer of certain annuity products to be issued by MassMutual.
retail business will be the developer of certain annuity products to be issued by MassMutual.
Marklinghaus said that there are a few investment returns that don't count towards Medicare's gross income calculation: distributions from HSAs, 401(h)s and Roth plans, earnings from reverse mortgages, income from cash-value life insurance policies and certain annuity distribution.
The proposal sought to reclassify certain annuity products as securities.
Certain annuity products and their complexities present unique challenges to advisors in this day and age, but they also present numerous opportunities to make solutions for the right type of client.
6334(a): wearing apparel, school books, fuel, provisions, furniture, personal effects, tools of the trade, certain unemployment benefits, undelivered mail, certain annuity and pension payments, workers' compensation, child support payments, income payments not exceeding an exempt amount, certain disability payments, certain public assistance payments, assistance under the Job Training Partnership Act, and principal residences and certain business assets.
In 2010, the National Association of Insurance Commissioners issued a model regulation aimed at making sure that certain annuity products were suitable for clients purchasing them, primarily because consumers had difficulty evaluating the very complex nature of fixed index annuities as well as variable annuities (discussed below).
As an example, he points to a new breed of annuity that imposes stricter asset allocation requirements on contract holders, essentially forcing them to invest a certain portion of assets in instruments such as futures, options and other derivatives that reduce the risk associated with certain annuity guarantees.
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.
However, Term Certain Annuity Factors are used instead of Single Life Annuity Factors.
In the case of a refund or period certain annuity, is the balance of the guaranteed amount, payable after annuitant's death, includable in the annuitant's gross estate?
To qualify the annuity must be: (1) irrevocable--periodic payments cannot be changed, (2) nontransferable--benefits cannot be changed to another beneficiary, (3) "actuarially sound"--a term certain annuity cannot be payable for longer than the annuitant's actuarial life expectancy; and (4) the state must be named the first remainder beneficiary up to the amount of Medicaid benefits paid on the annuitant's behalf (if a surviving spouse or blind or disabled child is named as the primary beneficiary, then the state may be named the secondary beneficiary).