Legal Definitions - life-income period-certain annuity

A life-income period-certain annuity is a type of annuity that guarantees a specified number of payments, even if the annuitant dies before the minimum amount has been paid. An annuity is an obligation to pay a stated sum, usually monthly or annually, to a stated recipient. These payments terminate upon the death of the designated beneficiary.

For example, suppose John purchases a life-income period-certain annuity that guarantees payments for 10 years. If John dies before the 10-year period is up, his beneficiary will continue to receive payments until the end of the 10-year period. This type of annuity provides a level of security for the annuitant and their beneficiaries.

Life-income period-certain annuities are often used as a retirement income source. They provide a guaranteed income stream for a specified period, which can help retirees plan their finances.