YOU ASK:
What is the definition of Term Certain Annuity?
WE ANSWER:
Term Certain Annuity refers to an annuity that provides income payment over a specified time period, regardless of whether the annuitant still lives within that period or not.
The annuity contract, in this case, guarantees the number of years for its payment period. However, after the guaranteed payment period has elapsed, there will be no payments in the future even when the annuitant is alive since the annuity is considered as spent.
Term certain annuities may not work best if it's to be used to fund retirement. This is because there is the possibility that the annuitant will outlive the annuity. In this case, he has no money left to use.
Was this insurance question and its answer useful?
| Not a bit | Very useful |
Have an Insurance Question? Ask For Insurance
More insurance terms around term certain annuity:
- Term Life Insurance
- Territorial Rating
- Terrorism Coverage
- Third-Party Administrator
- Third-Party Coverage
- Time Deposit
- Time Limit on Certain Defenses Provision
- Title Insurance
- Tort
- Tort Law
- Ten-Day Free Look Provision
- Tax-Deferred Basis
- Tax Sheltered Annuity (TSA)
- Swaps
- Surrender Cost Comparison Index
- Surrender Charge
- Surplus Lines
- Surplus
- Surety Bond
- Supplemental Coverage