What is an annuity certain?

The annuity may also be taken as a lump sum. Because it has a set expiration date, an annuity certain generally pays a higher rate of return than a lifetime annuity. Typical terms are 10, 15, or 20 years. An annuity certain provides a guaranteed retirement income for a pre-set period.

What is a synonym for annuity certain?

Synonyms for annuity certain include years certain annuity, period certain annuity, fixed period annuity, and guaranteed term or guaranteed period annuity. The investor in an annuity certain could easily outlive the payment period. Beware of relying on one for retirement income.

What is a period certain annuity?

A period certain annuity is a contract that lets you choose when and how long you’ll receive payments. The income you receive from the annuity is guaranteed for the time period that you specify. This income would be paid to you, but can pass to a named beneficiary when you die. Say you had a lifetime annuity with a 10-year period certain.