Annuity Certain

DEFINITION of 'Annuity Certain'

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.

INVESTOPEDIA EXPLAINS 'Annuity Certain'

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.

RELATED TERMS
  1. Lifetime Payout Annuity

    A type of insurance product that pays out a portion of the underlying ...
  2. Wraparound Annuity

    A type of annuity that allows the investor (the holder of the ...
  3. Annuity

    A financial product sold by financial institutions that is designed ...
  4. Fixed Annuity

    An insurance contract in which the insurance company makes fixed ...
  5. Deferred Annuity

    A type of annuity contract that delays payments of income, installments ...
  6. Surrender Period

    The amount of time an investor must wait until he or she can ...
Related Articles
  1. Bonds & Fixed Income

    Explaining Types Of Fixed Annuities

  2. Home & Auto

    An Overview Of Annuities

  3. Options & Futures

    Getting the Whole Story on Variable ...

  4. Options & Futures

    Selecting The Payout On Your Annuity

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...