Life-Income Period-Certain Annuity Law and Legal Definition
Life-income period-certain annuity is a form of annuity that guarantees a specified number of payments to an annuitant even if the annuitant dies before paying the minimum amount. For example, a 5-year period-certain annuity will make annuity payments for 5 years only. If the annuitant dies before the termination of 5 years, the payments will continue to the policy's beneficiaries for the remaining term. Since the insurance company knows about its maximum liability in advance, the monthly payment rate for a period-certain annuity is normally higher than the rate for a life annuity.