Are you looking for a steady stream of income in retirement? If so, you may want to consider a 10-year certain and life annuity. This type of annuity guarantees payments for ten years, no matter what happens to you. Plus, the payments continue for as long as you live. Read on to learn more about this retirement planning option.
What Is a 10-Year Certain And Life Annuity?
A 10-Year Certain And Life Annuity will provide payments to you for the rest of an annuitant’s lifetime with a minimum of 10 years, even if you die. If you pass away during the guaranteed period, the rest of the payments will go to your beneficiary.
If the annuitant outlives the ten years of guaranteed payments, they will continue to receive income payments for life; however, no payments would be available for the beneficiary.
Understanding a 10-Year Certain And Life Annuity
- In a 10-Year Certain And Life Annuity, the annuity issuer must make payments for ten years even if the annuitant dies.
- If the annuitant dies during the guaranteed 10-year period, the designated beneficiary will receive the balance of the guaranteed payments.
- If the annuitant lives beyond the guaranteed period, they will receive monthly payments for life.
- After the guaranteed period, the monthly payments stop when the annuitant dies.
- Annuity payments are distributed via annuitization, not a lifetime income rider.
Annuitization At A Glance
| Variable Annuity | Fixed Index Annuity | Fixed Annuity | Immediate Annuity | Deferred Income Annuity | Buffer Annuity | |
|---|---|---|---|---|---|---|
| Principal Protection | No | Yes | Yes | Yes | Yes | No |
| Access To Principal | Yes | Yes | Yes | No | No | Yes |
| Annuitization | Optional | Optional | Optional | Required | Required | Optional |
| Tax-Deferred Growth | Yes | Yes | Yes | No | No | Yes |
| Guaranteed Growth | No | Yes | Yes | No | No | No |
| Guaranteed Income | Yes | Yes | Yes | Yes | Yes | Yes |
| Inflation Protection | Yes | Yes | No | Yes | Yes | Yes |
| Death Benefit | Yes | Yes | Yes | Yes/No | Yes/No | Yes |
| Long-Term Care Help | Yes | Yes | Yes | No | No | Yes |
What Do My Beneficiaries Receive When I Die?
If a 10-Year Certain And Life Annuity owner dies before the tenth year, the beneficiaries will receive a series of payments until the ten years have passed. However, if the owner dies after the first ten years, the beneficiaries will not receive a death benefit.
Helpful tip: Life insurance might be a better option if you want to leave money to your beneficiaries. In some cases, you don’t need to take a medical examination. Instead, use our free tool to receive an instant quote for life insurance online. Coverage starts at $9.37 per month.
Next Steps
A 10-year certain and life annuity can provide you with a steady income in retirement, regardless of what happens to you. Plus, the payments continue for as long as you live. If this sounds like something you may be interested in, contact us for a quote today. We would be happy to discuss your options and help you find the best retirement planning solution for your needs. Thank you for reading!
Related Reading: 5 Year Certain And Life Annuity
10-Year Certain And Life Annuity Quotes
Frequently Asked Questions
What is a 10-year annuity?
A 10-year annuity is a deferred annuity with a ten-year surrender charge period. After the ten-year period is complete, the funds are liquid. A 10-year certain and life annuity is not a 10-year annuity.
What does a 15-year certain and life annuity mean?
A 15-year certain and life annuity is a type of annuity contract where the annuitant (the person receiving the payments) is guaranteed to receive payments for at least 15 years. If the annuitant dies within the 15-year period, the remaining payments will continue to be paid to the designated beneficiary. If the annuitant survives the 15-year period, payments will continue for the remainder of their life. In other words, the annuitant is guaranteed to receive payments for life, with a minimum guarantee of 15 years.
What does 5 year certain and life annuity mean?
A 5-year certain and life annuity is a type of annuity contract that guarantees the annuitant (the person receiving the payments) will receive payments for at least 5 years. If the annuitant dies within the 5-year period, the remaining payments will continue to be paid to the designated beneficiary. If the annuitant survives the 5-year period, payments will continue for the remainder of their life. In other words, the annuitant is guaranteed to receive payments for life, with a minimum guarantee of 5 years.
What does 10-year term life insurance mean?
A 10-year term life insurance policy is a type of life insurance that provides coverage for a specified period of 10 years. If the policyholder dies within the 10-year term, the death benefit, which is the amount specified in the policy, will be paid to the designated beneficiaries. If the policyholder does not die within the 10-year term, the policy will simply expire without providing any benefits.
What is a lifetime annuity?
An annuitant is guaranteed to not outlive their benefits with a lifetime annuity. This financial product provides regular income payments for the rest of the annuitant’s life, ensuring they continue receiving financial support no matter how long they live, thus mitigating the risk of outliving their assets. It is not the same as a 10-year certain and life annuity.