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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Thus, the period-certain annuity makes it certain that
The product in this case is a period-certain annuity that provides steadily increasing income from the day of retirement to the day that Social Security payments start to arrive.
But when you're all done, you've created your own period-certain annuity, and then what happens if you're still alive when the period runs out?