YOU ASK:
What is the definition of Guarantee Period?
WE ANSWER:
The Guarantee Period is the time that an annuity will pay for regular annuity income, regardless of whether the annuitant survives the period or not.
Annuities usually provide a guarantee period. Once the annuity reaches its maturity, or when the time comes for the annuity to make regular income payments, it guarantees a time when payments will come. If the annuitant is still alive within that period, he will be the one accepting the payment. If the annuitant has died before or during this period, it will be his beneficiaries or the estate who will receive the annuity payments.
Depending on the annuity, the guarantee period may be from 5 to 10 years.
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