Period Certain Annuities

Period certain is a annuitization option in which the annuitant selects a specific time period for which the annuity income payments will last. An annuity having this option is called period certain annuity and it gives payment to an annuitant for a pre specified period of time.

Period certain annuities are very popular and are widely considered as one of the best option available. Capable of successfully catering to specific needs of huge number of people, period certain annuities have been serving the masses for quite long time now. Among huge array of benefits, one of the most important and influential one is the comparatively higher amount of monthly income that one is entitled to receive in it. This higher rate of interest is caused by the simple factor that the insurance company knows its maximum liability in advance or the total amount that the company will be supposed to pay.

Another beneficial feature of Period Certain Annuity is that if the annuity holder dies before receiving all the payments then all remaining payments will be made to the heirs. But one aspect that often gets misunderstood is the fact that the remaining payments are made on the same monthly basis and not as lump sum amount or in one time. In case of the death of annuitant the payments will be shifted to the heirs but according to the pre-determined rule only. The payments will be given on monthly basis and after all the payments are made it will be ceased.

Feature of period certain annuties :

	The insurance company agrees to make payments for a specified period of time.
	The annuitant can outlive the payments.
	If the annuitant dies during that time period, payments continue to survivors or heirs.
	Annuity payments will be higher than for a straight annuity if the period is less than for the life expectancy and lower if it is for more than the life expectancy.