What does a life income annuity with a period certain guarantee?

A life income annuity with a period certain guarantees that payments will continue for a minimum fixed period, regardless of whether the annuitant is alive or has passed away. This means that if the annuitant dies before the specified period is over, the payments will continue to a beneficiary for the remainder of that guaranteed period. Therefore, the primary feature is the assurance that some payments will be made for that predetermined duration, ensuring financial support during that time.

This structure provides both a safety net for beneficiaries and a sense of security for the annuitant, knowing that their financial commitment will extend for a specific timeframe. It combines longevity annuity features with an additional assurance, making it an attractive option for those concerned about their loved ones' financial future even after their passing.