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What is a Life with Period Certain Annuity

What is a Life with Period Certain Annuity

Jason Stolz CLTC, CRPC

A Life with Period Certain Annuity combines lifetime income protection with a guaranteed minimum payout period. Even if the annuitant passes away early, payments continue to beneficiaries for the remainder of that period — ensuring income stability and legacy protection. It’s one of the most balanced annuity structures available for retirees seeking both longevity protection and family security.

At Diversified Insurance Brokers, our advisors help you compare annuity options from over 100 top-rated carriers. A Life with Period Certain Annuity can be customized with payout terms of 5, 10, 15, or even 20 years — providing flexibility to match your income goals and family priorities.

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How a Life with Period Certain Annuity Works

This annuity guarantees income for the annuitant’s lifetime, but also guarantees that payments continue for a set number of years — even if the annuitant dies. For example, a “Life with 10-Year Certain” ensures at least ten years of total payments, regardless of when death occurs. If the annuitant lives beyond the period certain, income continues for life.

This combination offers both longevity protection and beneficiary coverage, making it a popular choice for retirees who want to balance income security with family legacy goals.

Key Advantages

  • Guaranteed lifetime income: Payments continue for as long as you live.
  • Minimum payout period: Ensures your heirs receive remaining income if death occurs early.
  • Predictable planning: Know exactly how long payments are guaranteed.
  • Tax-deferred growth: Non-qualified annuities allow you to defer taxes on earnings.
  • Customizable terms: Choose 5-, 10-, 15-, or 20-year certain periods.

Life with Period Certain vs. Other Annuity Types

Feature Life with Period Certain Life Only Joint Life
Lifetime Income
Beneficiary Protection Payments continue for term None after death Yes, to surviving spouse
Starting Payout Moderate Highest Lower (covers two lives)

Who Should Consider This Option

A Life with Period Certain Annuity is best for retirees who want guaranteed income for life but also want to ensure beneficiaries receive value if they pass early. It’s well-suited for individuals with strong family priorities or those transitioning from accumulation to predictable income phases.

It’s also a good fit for clients coordinating multiple income sources, such as pensions and annuity ladders, where guaranteed baselines matter.

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FAQs: Life with Period Certain Annuities

What does “period certain” mean?

It guarantees that payments will continue for at least a specific number of years, even if the annuitant dies earlier.

Can I choose how long the period lasts?

Yes. Common options include 5, 10, 15, or 20 years — depending on your income and legacy goals.

What happens after the certain period ends?

Payments continue for life if you’re still living. The “period certain” only protects early years for beneficiaries.

Do beneficiaries receive the same amount?

Yes. During the guaranteed term, beneficiaries typically receive the same scheduled payment amount.

Does this reduce monthly income?

Yes, slightly. The added guarantee lowers the payout compared to life-only annuities but offers peace of mind.

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