The 'life with period certain' annuity payout option pays income:
Explanation
Life with period certain pays for the annuitant's entire life and also guarantees that, if the annuitant dies before a stated period (such as 10 or 20 years) ends, payments continue to a beneficiary for the rest of that period. It is not limited to a fixed number of years (that is period certain only), not simply paid until the deposit runs out, and not a two-life option (that is joint and survivor). The period-certain guarantee adds beneficiary protection to a life income.
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Related questions on this topic
- During the payout phase of a variable annuity, the number of annuity units is generally fixed, yet the payment amount varies because:
- An equity-indexed (fixed indexed) annuity protects the owner against index losses by providing:
- In an indexed annuity, the 'participation rate' determines:
- Under a 'cash refund' life annuity option, if the annuitant dies before receiving payments equal to the amount paid in, the beneficiary receives:
- A 'joint and survivor' annuity continues payments:
- Which annuity payout option provides the largest periodic income for a given amount of money?
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