Temporary Life Annuity

Updated: 09 June 2023

What Does Temporary Life Annuity Mean?

A temporary life annuity makes regular payments to the annuitant until the set expiration date or until the annuitant dies.

Insuranceopedia Explains Temporary Life Annuity

Most annuity contracts either have a set expiration date or make payments for life. Since a temporary life annuity combines both, on average it makes fewer payments than a regular annuity. As a result, it typically costs less. However, the annuitant needs to make sure that they have income after the temporary life annuity expires. It would be a good option for someone who retired early and wanted some extra monthly income until they become old enough to begin collecting Social Security, for instance.

Related Reading

Go back to top