Fixed-term Annuities provide what kind of income?

Fixed-term Annuities provide what kind of income?

• A. Provides guaranteed income for a fixed period; if you die before end, beneficiary continues payments.
• B. Pays for life only.
• C. Can only be deferred.
• D. Start with a lump sum and no periodic payments.

Answer: (A)

Fixed-term annuities offer a guaranteed income stream for a specific number of years. If you die before the term ends, the remaining payments can continue to a named beneficiary for the rest of that period. This setup provides certainty of cash flow for a defined horizon, which is what makes it distinct from a life-only annuity (which pays for life and ends at death) and from products that are purely deferred or that start with a lump sum and no ongoing payments. The defining feature is the period-certain guarantee, with potential continued payments to a beneficiary to cover the remainder of the term.

Fixed-term annuities offer a guaranteed income stream for a specific number of years. If you die before the term ends, the remaining payments can continue to a named beneficiary for the rest of that period. This setup provides certainty of cash flow for a defined horizon, which is what makes it distinct from a life-only annuity (which pays for life and ends at death) and from products that are purely deferred or that start with a lump sum and no ongoing payments. The defining feature is the period-certain guarantee, with potential continued payments to a beneficiary to cover the remainder of the term.