Certain And Continuous

AAA

DEFINITION of '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 the specified number of guaranteed payments, he or she would continue to receive income payment for life; however, no payments would be available to the beneficiary.

INVESTOPEDIA EXPLAINS 'Certain And Continuous'

Certain and continuous annuities are a type of guaranteed annuity where the annuity issuer is required to make payments for at least a specified number of year. A common example is a 10-year certain and continuous annuity. In this instance, monthly payments are paid to the annuitant for life in the event the annuitant dies, the designated beneficiary would receive any monthly payments for the remainder of the certain period - in this case, 10 years.


Otherwise, if the annuitant lives beyond the 10-year period, he or she will continue to receive monthly payments for life; however, after the 10-year period, the beneficiary would no longer be eligible for monthly payments.


Also called C&C Annuity.

RELATED TERMS
  1. Deferred Annuity

    A type of annuity contract that delays payments of income, installments ...
  2. Annuitant

    1. A person who receives the benefits of an annuity or pension. ...
  3. Life Annuity

    An insurance product that features a predetermined periodic payout ...
  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  5. Annuity

    A financial product sold by financial institutions that is designed ...
  6. Guideline Premium And Corridor ...

    A test used to determine whether an insurance product can be ...
Related Articles
  1. Investing Basics

    Calculating The Present And Future Value Of Annuities

    At some point in your life, you may have had to make a series of fixed payments over a period of time - such as rent or car payments - or have received a series of payments over a period of time, ...
  2. Bonds & Fixed Income

    Explaining Types Of Fixed Annuities

    Learn about this popular retirement tool, its pros and cons and how annuities work to create a guaranteed regular stream of retirement income.
  3. Options & Futures

    Getting the Whole Story on Variable Annuities

    Variable annuities are another way to save money tax-deferred - but don't jump in blindly!
  4. Options & Futures

    Selecting The Payout On Your Annuity

    Make sure you understand your options for withdrawing your funds from this complex instrument.
  5. Retirement

    Inflation-Protected Annuities: Part Of A Solid Financial Plan

    If you worry about inflation and longevity risks, this may be the investment for you.
  6. Retirement

    Are annuities for seniors only?

    Understand the benefits of investing in annuities at a younger age and how fixed or variable annuities might benefit the investor depending on risk tolerance.
  7. Retirement

    What is a longevity annuity?

    Understand all the characteristics of a longevity annuity contract, the purpose of a longevity annuity and what type of investor it appeals to.
  8. Insurance

    How do I determine the face value of a life insurance policy?

    Read about how to determined the face value for any life insurance policy, and see what circumstances can trigger a change in face value.
  9. Retirement

    What type of investor should consider annuities?

    Learn about the features and benefits of annuities and when to consider one. Investors seeking to secure income for retirement benefit the most.
  10. Retirement

    What is the difference between a fixed and variable annuity?

    Understand the difference between fixed, variable and indexed annuities, and read a brief summary of their respective risks and advantages.

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center