Dictionary of Finance and Investment Terms: period-certain annuity
period-certain annuity
annuity that guarantees payments to an annuitant for a particular period of time. For example, a 10-year period-certain annuity will make annuity payments for 10 years and no more. If the annuitant dies before the 10 years have expired, the payments will continue to the policy's beneficiaries for the remaining term. The monthly payment rate for a period-certain annuity is generally higher than the rate for a life annuity because the insurance company knows its maximum liability in advance.
