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A lifetime annuity provides payments for the duration of your life, while a fixed-period annuity, also known as a term certain annuity, provides payments for a predetermined number of years, such ...
Whether an annuity is for the life of the account holder, his or her spouse or a shorter term certain of, for example, 10 or 20 years will affect how much the monthly payout you receive is.
| ¯ indicates an annuity of 1 unit per year payable for 10 years with payments being made at the end of each year a 65 : 10 | ¯ {\displaystyle a_{65:{\overline {10|}}}} indicates an annuity of 1 unit per year for 10 years, or until death if earlier, to someone currently age 65
For example if you buy an annuity 20 years before the annuitization phase begins, it will pay you more per month than if you bought the same product 10 years in advance. ... Term certain annuities ...
This type of immediate annuity pays the annuitant for a designated number of years (i.e., a period certain) and is used to fund a need that will end when the period is up (for example, it might be used to fund the premiums for a term life insurance policy). Thus the person may outlive the number of years the annuity will pay.
A guaranteed annuity or life and certain annuity, makes payments for at least a certain number of years (the "period certain"); if the annuitant outlives the specified period certain, annuity payments then continue until the annuitant's death, and if the annuitant dies before the expiration of the period certain, the annuitant's estate or ...
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