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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Example 2: Marie pays $100,000 for a single life income annuity that includes a 10-year period certain. If Marie lives for 25 years, the insurer will keep sending her checks.
* Period certain only: This allows the client to target how long they need an income stream.
The use of short term "period certain only" Single Premium Immediate Annuity (SPIA) remains a viable tool in assisting some of your clients to qualify for Medicaid benefits while protecting asset values for their heirs.
For example, to generate the $500 Al and Ann need from a joint and survivor life immediate annuity with a 10-year period certain may require a premium of approximately $92,000.
And many among the current crop of products offer options--life contingent versus period certain payouts, single premium versus multi-premiums, a return of death benefit or living commuted value--that provide clients with a degree of flexibility not available in earlier iterations.
* Period certain. The owner elects a period of years called the "guaranteed period," during which he will receive monthly income; however, all income payments will cease after the end of the guaranteed period.
The letter also outlines "supervision violations" in "FA training" and "sales practices," and stated that "during the relevant period certain sales of Lehman PPNs were unsuitable."
As an aside, funding an additional $3,000 into the income annuity would provide a joint lifetime income with a 20-year period certain while providing the same $10,000 annual income.
Under the terms of the LOI, Vringo will issue m-Wise 1.9 million shares of its common stock, provide m-Wise's management with a retention package comprised of options to purchase 500,000 shares of common stock, and assume and pay over a two year period certain of m-Wise's expenses and related costs in the amount of $615,000.
Vanguard's online annuity calculator shows that if a 65-year-old couple puts down $100,000 and chooses a 3.5 percent AIR, they can get a joint and survivor life (75 percent continuation) IVA with a 10-year period certain that pays $514.60 a month to start.
Pre-July 1986 investment in the contract (adjusted for period certain guarantee) $7,000 One year's guaranteed annuity payments (12 x $100) $1,200 Life expectancy from Table I, male age 65 15 yrs.
(8) Payments made under an annuity contract may be for the life of the employee (or lives of the employee and his beneficiary), or a period certain not longer than the life expectancy of the employee (or joint and last survivor life expectancy of the employee and his beneficiary).