What is a period certain annuity?

Common periods for a period certain annuity are 10, 15, or 20 years. A hybrid product combines a period certain annuity with a life annuity and is called "income for life with a guaranteed period certain benefit" (also referred to as "life with period certain"). This strategy provides a guaranteed payout for life that has a period certain phase.

How does a period certain annuity work?

A period certain annuity lets you choose when and how long you’ll receive payments. Here’s how it works. Consider working with a financial advisor as you create or update a retirement plan. When you purchase an annuity, you pay an insurance company a set amount of money.

What are the key features of a period certain annuity?

The key features of a period certain annuity include guaranteed income for a fixed period, flexibility in payment frequency (monthly, quarterly, semi-annually, or annually), beneficiary options in case of the annuitant's death, and specific tax implications depending on the type of annuity and the source of funds used for the purchase.