Period Certain

An annuitization-method option with which the annuitant selects a specific time period for which the annuity income payments will last. This is unlike the more commonly selected life option, with which the annuitant receives an income payment for the rest of his or her life, regardless of how long (or short) their retirement years end up lasting.

By selecting the period-certain annuitization option, the annuitant is usually able to receive a higher monthly payment than with the life option. This extra income comes with a price though: the risk that the annuity payments will run out before the annuitant's death. For example, say a 65-year-old annuitant decided to start receiving payments from his or her annuity, and chose a 15-year period-certain payout option. This which would provide him or her with a retirement income until the age of 80. Should the annuitant die at or before age 80, this option would not present a problem, but should he or she be expected to live longer than 80 years and not have another source of retirement income, this option could prove too risky.


Investment dictionary. . 2012.

Look at other dictionaries:

  • period-certain annuity — An annuity that provides guaranteed payments to an annuitant for a specified period of time. Bloomberg Financial Dictionary …   Financial and business terms

  • life income–period certain annuity — see annuity Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

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  • Period — Pe ri*od, n. [L. periodus, Gr. ? a going round, a way round, a circumference, a period of time; ? round, about + ? a way: cf. F. p[ e]riode.] 1. A portion of time as limited and determined by some recurring phenomenon, as by the completion of a… …   The Collaborative International Dictionary of English

  • period — n. portion of time 1) a cooling off; incubation; prehistoric; question and answer; rest; transitional; trial; waiting period 2) (sports) an extra period 3) for a period 4) in a certain period (in that period of history) menstruation 5) to have a… …   Combinatory dictionary

  • period — pe·ri·od (pîr’ē əd) n. 1. An interval of time characterized by the occurrence of a certain condition, event, or phenomenon: »a period of economic prosperity. 2. An interval of time characterized by the prevalence of a specified culture, ideology …   Word Histories

  • Certain And Continuous — A type of annuity that guarantees a number of payments, even if the annuitant dies. If the annuitant passes away during the guaranteed period, a specified beneficiary will receive the rest of the payments. Alternatively, if the annuitant outlives …   Investment dictionary

  • certain — 01. Geoff is [certain] to attend the party. He never misses a chance to drink beer with the gang. 02. She is [certain] to pass. Her marks have been excellent all term. 03. The doctor isn t [certain] if it is necessary to operate at this point. 04 …   Grammatical examples in English

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