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 5 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 5 years of guaranteed payments, then they would 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 payments for 5 years 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 is over, the monthly payments stop when the annuitant dies.
- Annuity payments are distributed via annuitization.
5-Year Certain And Life Annuity Quotes
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