Term Certain Annuity

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This is the first time I heard of this insurance term, Term Certain Annuity. It is different from the traditional annuities which pay till your death. Term Certain Annuity pays for a limited period of time. That means if the annuity is for ten years, it will pay you every month for ten years. If you happen to outlive this fixed term annuity, you will have to find other means of income. This is good for those who have other retirement income. It is also good for those with family history of terminal illness that leads to shorter life expectancy. If all your grandparents, parents, and relatives do not live beyond 65, you are not likely to live above the age of 70 too. In this case, buying term certain annuity makes sense. You will get a higher payout because the insurance company does not have to worry about you living to 120 years old.