YOU ASK:

What is the definition of Life Annuity with Period Certain?

WE ANSWER:

Life Annuity with Period Certain is a life annuity that involves a guaranteed period where annuity payments will be made.

The Life Annuity with Period Certain guarantees that the income payments will keep coming for a certain length of time. That means the annuity will continue to pay for the income benefits even when the annuitant is already dead. The beneficiaries will be the one who will receive the payments until the end of the period specified in the contract. There are also cases where the annuitant outlives the guaranteed payment period. This will mean that the payments will continue until his death.

The guaranteed payment period may be from 10 to 20 years. But this really depends on when the annuity was bought, as well as the average life expectancy of someone who retires at 65 years of age.

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