Glossary

Period certain

An annuity payout feature that guarantees payments for a set number of years, paying a beneficiary if the annuitant dies before that time is up.

Also called: certain period, guaranteed period, term certain

A period certain is a guaranteed stretch of payments, usually 5, 10, 15 or 20 years, built into an annuity payout or a life insurance settlement option. It can stand alone ("10 years certain," which pays for exactly 10 years and then stops) or be combined with lifetime income ("life with 10 years certain," which pays for life but for no less than 10 years).

Here's how the guarantee works in a hypothetical example: a 70-year-old buys a SPIA paying $1,000 a month for life with a 10-year period certain. If she dies after three years, her beneficiary receives the remaining seven years of payments, 84 checks, either as continuing payments or, under some contracts, as a discounted lump sum. If she lives 25 years, payments continue for all 25.

The guarantee isn't free. The longer the period certain, the lower each payment compared with a life-only annuity, because the insurer gives up some of the mortality credits that boost lifetime income. It suits buyers who want income for life but dislike the idea that an early death leaves nothing for heirs. Compare it with installment refund and cash refund options before choosing, and see how annuity payments are taxed.

Last reviewed October 4, 2026

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Related terms

Annuitization Converting an annuity's account value into a stream of guaranteed payments for life or a set period, usually giving up access to the lump sum. Life-only annuity An annuity that pays income for one person's lifetime and stops at death, with no refund or payments to heirs, in exchange for the highest payout. SPIA An annuity bought with one lump sum that starts paying guaranteed income within a year, often for life, in exchange for giving up access to the money. Life income settlement option A payout choice that turns a death benefit into guaranteed payments for the rest of the beneficiary's life, sometimes with a minimum number of years. Annuitant The person whose life expectancy determines an annuity's payments; lifetime income is usually measured by that person's life.

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Annuity payout calculator Estimates monthly income from an immediate annuity, paid for a fixed period or for life on average U.S. mortality, to sanity-check real quotes.