annuity period definition
Cash Refund Annuity. An annuity contract that returns funds back to a beneficiary ... A financial product sold by insurance companies that requires ... The time between the end of the business day of the first business ... An insurance product that pays the holder a monthly income for ... Definition - What does Life Annuity with Period Certain mean? Life Annuity with Period Certain is an annuity payout option that provides payments to the annuitant for life or to their estate for the period certain, whichever is longer. Deposits into annuity contracts are typically locked up for a period of time, known as the surrender period, where the annuitant would incur a penalty if all or part of that money were touched. These surrender periods can last anywhere from 2 to more than 10 years, depending on the particular product. We are not an insurance agency. Not affiliated or endorsed by the United States government or any other government agencies. ©2016 Health Insurance Online. All rights reserved. Annuitant: The individual who receives payments from an annuity plan under the terms of that plan. Annuity: Refers to the payments made on a periodic basis to an individual under an annuity plan. The payments are generally provided until the individual dies. Annuity Period: The length of time between income payments made under an annuity income plan; the time span may be monthly, quarterly, semi-annually, or annually. Arbitrage: The act of buying and selling commodities in two markets at the same time to benefit from price differences between the markets. Life Annuity with Period Certain. Life Annuity with Period Certain is an annuity payout option that provides payments to the annuitant for life or to their estate for the period certain, whichever is longer. When an investor who has purchased an annuity annuitizes the contract they must select a payout option for the contract. An investor who is seeking the large monthly payment but who still wants to ensure that the payments are made for a minimum period of time would select the life with period certain option. What is an 'Annuity'. An annuity is a contractual financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Certificate Annuity: A type of annuity in which the interest rate guarantee period is equal to the surrender charge period. Certificate of Deposit (CD): Certificates issued by banks in exchange for a cash deposit, which is held for a certain period of time and a set interest rate. Annuity Contract: A legal contract in which an insurer promises to make periodic payments to a designated individual over a specific period of time beginning on a set date in exchange for that individual's payment of premiums to the insurer.
The length of time between income payments made under an annuity income plan.