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 Definitions
Related Terms
Related Articles
Everything You Need to Know Before Choosing a Life Insurance Policy
Life Insurance Basics: Top Tips Before You Commit
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Related Reading
Life Insurance Statistics
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree