Annuity Certain

The long-planned sequel to the award-winning Broadway sensation Annuity Maybe!

Actually, the term refers to a specific kind of annuity contract. In an annuity, you pay a lump sum now to get regular payments some time down the road. Usually, these payments last until you die. However, in an annuity certain, the payments will continue (not that you'd notice), with the money going to some beneficiary that you name as part of the contract. The length of time these payments continue will also get laid out in the contract.

One of the risks of an annuity is that you won't get full value from the money you put into the investment because your retirement period will be too short (due to your aforementioned death...talking retirement planning can be a bummer). An annuity certain hedges this risk somewhat. You might not get full value personally, but at least your heirs will, since the annuity will at least get paid out for a minimum length of time, whatever might happen to you.