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. Annuity

    A financial product sold by financial institutions that is designed ...
  2. Beneficiary

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

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

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

    An insurance product that features a predetermined periodic payout ...
  6. Convertible Insurance

    A type of life insurance that allows the policyholder to change ...
Related Articles
  1. Calculating The Present And Future Value ...
    Investing Basics

    Calculating The Present And Future Value ...

  2. Explaining Types Of Fixed Annuities
    Bonds & Fixed Income

    Explaining Types Of Fixed Annuities

  3. Getting the Whole Story on Variable ...
    Options & Futures

    Getting the Whole Story on Variable ...

  4. Selecting The Payout On Your Annuity
    Options & Futures

    Selecting The Payout On Your Annuity

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center