5-Year Certain And Life Annuities

Shawn Plummer

CEO, The Annuity Expert

What Is A 5-Year Certain And Life Annuity?

A 5-Year Certain and Life Annuity is a blend of stability and longevity in the world of retirement planning. It’s a contract with an insurance company where you invest a lump sum, and in return, they promise to pay you a regular income for life. The ‘5-Year Certain’ part means that if you pass away within five years of the annuity start date, your designated beneficiaries will continue to receive payments for the remainder of the five-year period.

What Does 5 Year Certain And Life Annuity Mean?

How Does a 5-Year Certain and Life Annuity Work?

When you purchase this annuity, you’re essentially locking in a stream of income. The insurance company uses your initial investment to generate payouts. These payments start immediately or at a future date, depending on your choice. If you live beyond five years, you keep receiving payments for life, but if you pass away within those five years, your beneficiaries get the payments until the five-year mark.

What Does 5 Year Certain And Life Annuity Mean

Who Benefits from a 5-Year Certain and Life Annuity?

This annuity is ideal for individuals seeking income security in retirement. It’s a safety net for those worried about outliving their savings. Also, it offers peace of mind for people who want to ensure their loved ones receive financial benefits if they pass away early.

What Does 5 Year Guarantee Mean

Why Choose a 5-Year Certain and Life Annuity?

This type of annuity offers a balance between guaranteed income and legacy planning. You get the assurance of income for life, crucial in managing retirement expenses, and the comfort of knowing your beneficiaries are protected if you’re no longer around. It’s about planning for the long term while taking care of the short term.

What Is A 5 Year Annuity

Comparison with Other Annuity Types

Feature5-Year Certain and Life AnnuityStraight Life AnnuityTerm Certain Annuity
Payment DurationFor life, with 5 years guaranteedFor life onlyFor a set term (e.g., 10 years)
Beneficiary BenefitPayments for the remainder of 5 years if the annuitant passes away earlyNo payments after deathPayments until the end of the term
PurposeBalances lifetime income with beneficiary protectionMaximizes income for the annuitantProvides income for a specified period
What Is 5 Year Certain And Life Annuity


The 5-Year Certain and Life Annuity stands out as a strategic choice for retirement income. It harmonizes the need for a lifelong income with the desire to protect beneficiaries. This annuity isn’t just a financial product; it’s a commitment to your and your loved ones’ financial security, ensuring that your retirement years are as worry-free as possible. By choosing this annuity, you’re not just planning for retirement; you’re safeguarding your legacy.

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Frequently Asked Questions

What is a 5-year certain and life annuity?

A 5-year certain and life annuity provides periodic payments to an annuitant for life. However, if the annuitant dies before receiving payments for five years, they will continue to be a designated beneficiary until the end of the five years, after which they cease. If the annuitant lives beyond five years, payments continue for their lifetime.

What does a 5-year certain and life annuity mean?

A “5-year certain and life annuity” means guaranteed annuity payments for life, with a promise of at least five years of payments. If the annuitant passes away before five years, the payments continue to the beneficiary until the 5-year term concludes.

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed insurance agent and annuity broker with over a decade of first-hand experience. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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