An 'annuity certain' (period certain only) option pays income:
Explanation
A period certain only (annuity certain) option pays a set income for a specified number of years and stops when that period ends, whether or not the annuitant is still alive; if the annuitant dies during the period, remaining payments go to a beneficiary. It is not tied to the annuitant's lifetime, not a two-life option, and not conditioned on disability. Because it lacks a life contingency, it is used when income is needed for a defined period rather than for life.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- An immediate annuity (SPIA) is funded with:
- A key advantage of an annuity's accumulation phase is that the earnings:
- When recommending an annuity, a producer must assess suitability, which includes considering the client's:
- The 'free look' provision on a newly issued annuity allows the owner to:
- To sell variable annuities, a producer must hold:
- The process of converting an annuity's accumulated value into a stream of income payments is called:
Last reviewed: · editorial process