A temporary annuity certain would pay income for a fixed period regardless of survival.

A temporary annuity certain would pay income for a fixed period regardless of survival.

• A. Joint and survivor
• B. Life income
• C. Temporary annuity certain
• D. Fixed period

Answer: (C)

A temporary annuity certain is a type of annuity that guarantees payments for a fixed period, regardless of whether the recipient is alive during those years. That means the income is set for a specified number of years and remains in place for that term, with the possibility that any remaining payments could pass to a beneficiary if the annuitant dies before the period ends. This specific feature—a guaranteedPayments for a stated term independent of survival—is what defines a temporary annuity certain. The other options describe different concepts. A life income pays only while the person is alive; a joint and survivor covers two lives and continues to a second person after the first dies; and a fixed period describes the duration but isn’t the standard term used to capture the guaranteed-term nature of this contract. Therefore, the term that best matches the description is temporary annuity certain.

A temporary annuity certain is a type of annuity that guarantees payments for a fixed period, regardless of whether the recipient is alive during those years. That means the income is set for a specified number of years and remains in place for that term, with the possibility that any remaining payments could pass to a beneficiary if the annuitant dies before the period ends. This specific feature—a guaranteedPayments for a stated term independent of survival—is what defines a temporary annuity certain.

The other options describe different concepts. A life income pays only while the person is alive; a joint and survivor covers two lives and continues to a second person after the first dies; and a fixed period describes the duration but isn’t the standard term used to capture the guaranteed-term nature of this contract. Therefore, the term that best matches the description is temporary annuity certain.