What is the definition of Period Certain?
Period Certain refers to the period or the length of time that the annuity is guaranteed to make income payments. This is regardless of whether the annuitant survives the period or not. If the annuitant dies before the specified period is finished, his beneficiaries will be the ones receiving the income payments.
This is provided for annuities with period certain. Under an annuity with period certain, the insurance company or annuity issuer is obligated to provide the specified income payments for the number of years that was originally guaranteed or promised.
For example, if Sue buys an annuity with period certain with a 10-year guarantee period, she stands to receive income payments for at least 10 years. If the annuity still has cash values left after that, the annuity will continue to pay until the cash value is used up.
| Not a bit | Very useful |
- Personal Articles Floater
- Personal Injury Protection Coverage (PIP)
- Personal Lines
- Point-of-Service Plan
- Policy
- Policy Dividend Options
- Policyholders’ Surplus
- Political Risk Insurance
- Pollution Insurance
- Pool
- Peril
- Per Stirpes Beneficiary Designation
- Per Capita Beneficiary Designation
- Pension
- Pension Benefit Guaranty Corporation
- Payout Options
- Pay-At-The-Pump
- Participating Policy
- Partial Disability
- Paid-Up Policy