Explore commonly used personal finance terms.
An annuity certain provides a guaranteed payment stream for a predetermined period, such as 10 or 20 years, regardless of the annuitant’s life. If the annuitant passes away before the period ends, the remaining payments go to a designated beneficiary. This type of annuity offers predictable income without the longevity risk associated with life annuities, making it useful for fixed-term financial planning, such as funding education or supporting a family for a specific period.
