Fixed Period Annuity

Also known as a Period Certain Annuity

Fixed Period Annuity is a term used to describe a specific payout option for an Immediate Annuity contract. When an annuity distribution period begins or the annuitization begins, the annuitant can choose distributions over a fixed period of time. The amount of time is usually a function of many years such as ten or fifteen years during which annual, bi-annual, or monthly payments are made to the annuitant.

Fixed period annuities are usually chosen to cover a period of time during which no other benefits or income is earned. For example, a retiree may choose to purchase an annuity that would pay back over a period of time after regular income has ceased but retirement benefits or other benefits have not yet begun. If the annuitant dies before the annuity has finished paying out, the remaining annuity can be transferred to a beneficiary.

Fixed Period Annuity Payout Options:

The Fixed Period Annuity can be structured with several different payout options. An annuity expert can work with you to determine which payout option is best for your unique situation.

  • 5-year fixed period annuity – level payments are made over a period of five years
  • 10-year fixed period annuity – level payments are made over a period of ten years 
  • 15-year fixed period annuity – level payments are made over a period of fifteen years
  • 20-year fixed period annuity – level payments are made over a period of twenty years
  • 25-year fixed period annuity – level payments are made over a period of twenty five years 

The total sum of money distributed over the payment period is decided upon by the amount paid into an annuity, a shorter fixed period annuity would typically have larger payments to the annuitant than a longer fixed period annuity. Some annuities can also payout for the lifetime of the annuitant, otherwise known as Lifetime Annuities


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