Definition of Period Certain
Period Certain is an annualization-method choice with which the annuitant chooses a particular time frame for which the premium earnings expenses will last.
Brief Explanation of Period Certain
This is compared with the also chosen lifestyle choice, with which the annuitant gets an ongoing revenue transaction throughout his or her lifestyle, regardless of how long (or short) their pension decades end up long long-term.
By choosing the period-certain annualization choice, the annuitant is usually able to acquire a greater transaction per month than with the lifestyle choice. This additional money comes with a price, though the threat that the premium expenses will run out before the annuitant’s loss of life. For example, say a 65-year-old annuitant made the decision to start getting expenses from his or her premium and opt for 15-year Period Certain payment choice. This would provide him or her with pension earnings until the age of 80. This choice would not existing a problem, but should he or she be supposed to reside more than 80 many not have another way to obtain pension earnings, this choice could prove to risk.