A financial instrument that provides a stream of payments, for a predetermined number of years. An annuity certain will continue a stream of payments remitted to the annuitant's beneficiary or estate, if the annuitant dies before the payment term ends. The payments are made on a regular schedule, such as monthly, quarterly, semiannually or annually.
In contrast, a life annuity remits a stream of payments to the annuitant for the duration of his or her life, rather than ending on a predetermined date. If the life annuity's guaranteed period has not expired at the time of the annuitant's death, however, the annuity will continue to make payments to the annuitant's beneficiary or estate, until the guaranteed period ends.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
annuity certain — see annuity Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
annuity certain — noun (plural annuities certain) : an annuity payable in any event for a term of years * * * pl. annuities certain. an annuity payable for a certain number of years regardless of any contingency … Useful english dictionary
annuity certain — pl. annuities certain. an annuity payable for a certain number of years regardless of any contingency. * * * … Universalium
annuity certain — An annuity in which payments continue for a specified period irrespective of the life or death of the person covered. In general, annuities cease on the death of the policyholder unless they are annuities certain … Accounting dictionary
annuity certain — An annuity in which payments continue for a specified period irrespective of the life or death of the person covered. In general, annuities cease on the death of the policyholder unless they are annuities certain … Big dictionary of business and management
annuity certain — /əˌnju:ɪti sɜ:tən/ noun an annuity that provides payments for a certain number of years, regardless of life or death of the annuitant … Dictionary of banking and finance
annuity certain — An annuity that pays a specific amount on a monthly basis for a set amount of time. Bloomberg Financial Dictionary … Financial and business terms
Annuity (European financial arrangements) — An annuity can be defined as a contract which provides an income stream in return for an initial payment.Immediate annuityAn immediate annuity is an annuity for which the income stream begins at a time after the initial payment which is less than … Wikipedia
annuity — /euh nooh i tee, euh nyooh /, n., pl. annuities. 1. a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient s life, in consideration of a stipulated premium paid either in prior installment… … Universalium
annuity — /an(y)uwatiy/ A right to receive fixed, periodic payments, either for life or for a term of years. Moore v. O Cheskey, App., 87 N.M. 66, 529 P.2d 292, 293. A fixed sum payable to a person at specified intervals for a specific period of time or… … Black's law dictionary