5 Year Certain And Life Annuity

Shawn Plummer

CEO, The Annuity Expert

If you’re looking for guaranteed income in retirement, you may want to consider a 5 year certain and life annuity. This type of annuity provides guaranteed payments for a set period – usually five years – and then continues to pay for the rest of your life. It’s a popular choice for retirees who want assurance that they’ll have a steady income stream throughout their golden years. Here’s what you need to know about 5-year certain and life annuities.

What Is a 5-Year Certain And Life Annuity?

A 5-Year Certain And Life Annuity is a type of annuity that will provide payments to you for five 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 five years of guaranteed payments, they will continue to receive income payments for life; however, no payments would be available for the beneficiary.

Understanding a 5-Year Certain And Life Annuity

  • In a 5-Year Certain And Life Annuity, the annuity issuer must make five-year payments even if the annuitant dies.
  • If the annuitant dies during the guaranteed 5-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.

What Do My Beneficiaries Receive When I Die?

If a 5-Year Certain And Life Annuity owner dies before the fifth year, the beneficiaries will receive a series of payments until the five years have passed. If the owner dies after the first five 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 exam. Use our free quoting tool and buy life insurance online. Coverage starts at $9.37 per month.

Next Steps

If you’re looking for a retirement plan offering guaranteed payments, a five-year certain and life annuity may be a perfect choice. Contact us today to get started on your application – we would be happy to help!

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

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