- A type of annuity that continues to make payments until the end of the guarantee period, even if the annuitant dies before the end of the annuity's term. Likewise, if the annuitant dies before the end of the term, payments are to be made to any beneficiaries or the annuitant's estate. For example, an annuity certain can be arranged to make monthly payments until the annuitant reaches ninety years old, however if the annuitant passes away at the age of eighty-five, then for the remaining five years payments would be made to the annuitant's beneficiaries. Also known as a "years certain annuity" or "term certain annuity."
term certain annuity, full term annuity payout, guaranteed payout, years certain annuity
Related Terms and Acronyms
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Cash Refund Annuity — Definition,
- An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
- Fixed Annuity — Definition,
- An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
- Guarantee Period — Definition,
- A time period where income payments from an annuity are guaranteed.
- Payout Phase — Definition,
- The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
- Wraparound Annuity — Definition,
- An annuity that allows the annuitant to control how funds in the annuity are invested.