Term Certain Annuity

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Definition of 'Term Certain Annuity'

An insurance product that guarantees a periodic payment of a predetermined amount for a fixed term. Once the term has elapsed, these products are spent and offer no possibility of any future payments, even if the annuitant is still alive. Annuitants may choose to purchase these products gradually by making periodic payments, or they may make a purchase with a single lump sum payment. Usually, lump sum purchases are made at, or shortly after, the annuitant's retirement.
Investopedia Says

Investopedia explains 'Term Certain Annuity'

Term certain annuities make periodic payments to the annuitant over time, but once they're done, they're done. The main risk involved in purchasing a product like this is that you may outlive your annuity and be left with no money to live off of. For this reason, term certain annuities should only be purchased under the guidance of a reputable financial professional.

Because of the tax-deferred status of insurance products, many wealthy investors or above-average income earners choose to purchase term certain annuities for the tax advantages they offer.

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'Term Certain Annuity'

  • Explaining Types Of Fixed Annuities

    http://www.investopedia.com/articles/retirement/05/071205.asp
    ... Further, in the event of failing health and increased medical costs, the income
    of a term certain annuity will not increase to accommodate the annuitant's ...

  • Selecting The Payout On Your Annuity

    http://www.investopedia.com/articles/retirement/05/071105.asp
    ... With this option the value of your annuity is paid out ... Should you elect a 15-year
    period certain and die ... Life with Guaranteed Term Many people like the idea of ...

  • Life Expectancy: It's More Than Just A Number

    http://www.investopedia.com/articles/insurance/09/life-expectancy-insurance-annuity.asp
    ... for a beneficiary, see Buying Life Insurance: Term Versus Permanent ... The payout usually
    begins at a certain age, and ... on the terms of the annuity, may continue to ...

  • Watch Your Back In The Annuity Game

    http://www.investopedia.com/articles/pf/06/annuities.asp
    ... Customer complaints, certain consumer-initiated arbitrations; Civil judicial events ...
    questions: Will you use the annuity primarily to ... or a similar long-term goal ...

  • Series 26 Study Guide - Variable Contracts - Types of Annuity ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/annuity-payouts.asp
    ... For example, a client who purchases a 10-year period certain annuity will have a
    guarantee from the insurance company: payments will be made for the life of ...

  • Series 6 Study Guide - Variable Contracts - Types of Annuity ...

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/types-annuity-payouts.asp
    ... For example, a client who purchases a 10-year period certain annuity will have a
    guarantee from the insurance company: payments will be made for the life of ...

  • Series 6 Study Guide - Variable Contracts - Annuity Distributions ...

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/annuity-distributions.asp
    ... income and gains (although certain insurance companies ... a particular minimum level
    of annuity payments, even ... Other features may include long-term care insurance ...

  • Retiring Early: How Long Should You Wait?

    http://www.investopedia.com/articles/retirement/06/retiringearly.asp
    ... steady, monthly income. One strategy could be to delay the benefits and
    buy a term-certain, fixed immediate annuity. You'll get ...

  • The Foundation Of Structured Settlements

    http://www.investopedia.com/articles/pf/09/structured-settlements.asp
    ... lawyers can often receive monetary compensation for selecting certain annuity companies ...
    to be structured against inflation can create a long-term income stream ...

  • Series 26 Study Guide - Variable Contracts - Annuity Distributions ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/annuity-distributions-charges.asp
    ... Often, they will include the following costs: Surrender Charge: If the investor
    withdraws money from a variable annuity within a certain period after a ...

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