Term Certain Annuities

Also available from banks. Life annuities are only available from insurers.

A Term Certain Annuity is also known as an "annuity certain" or "fixed-term annuity", and may be abbreviated as "TCA".

  • no risk to annuitant
    • payment amount, frequency (e.g., monthly) and duration (e.g., 10 years) are all known
  • benefit payments continue for a specified number of years or to a specified age
  • if the annuitant dies before the end of the term, one of the following occurs
    1. income goes to the beneficiary for the rest of the term
    2. to the estate of the annuitant
    3. paid as a lump sum to the annuitant’s estate

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