Life Income With Period Certain

What Does Life Income With Period Certain Mean?

A life income with period certain is a type of annuity that provides regular payments to the insured for a specified number of years. If the insured dies before the end of the period, the beneficiary will receive the remaining payments from the annuity.

This type of annuity is also known as a period certain annuity.

Insuranceopedia Explains Life Income With Period Certain

This annuity is advantageous if the annuitant does not outlive the payment period. However, if the annuitant relies on the annuity for income and outlives this period, they will find themselves without further income. Period certain is one of several annuity payout structures, and it’s worth comparing it against other types of annuities before deciding which one fits.

For guaranteed lifelong income, a person might consider a different annuity that provides payments for the remainder of their life. Older buyers often look at this kind of annuity alongside life insurance options for seniors, since retirement planning typically involves both income products and a death benefit for heirs.