period-certain annuity

Definition

A type of annuity that guarantees benefit payments for a designated period of time. A period-certain annuity might cover a small period of time or a longer period of time. During this specified time, benefits from the annuity are paid to the policyholder until the expiration date on the annuity has been reached. If a policyholder dies during the timeframe selected for the period-certain annuity, the descendant's beneficiary will continue to receive the annuity payments until the expiration date. For example, if a policyholder selected a 20 year period and died during year 15, the beneficiary would continue to receive payments for 5 years.

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For those going into retirement and who want and exact figure from their investment vehicle you may want a period-certain annuity so you can plan more exactly what you will be able to do.

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PERIOD-CERTAIN ANNUITY An annuitization-method option with which the annuitant selects a specific time period for which the annuity income payments will last. This is unlike the more commonly selected life option, with which the annuitant receives an income payment for the rest of his or her life, regardless of how long (or short) their retirement years end up lasting

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period of qualification periodic