Term Certain Annuity Definition

An insurance product that pays a specified amount each payment period for a fixed number of payments; even if the annuitant is still alive when the term expires, no future payments will be made (e.g. you get what you get and that’s it).

As with most annuities, term certain annuities can be purchased with a single large payment or with multiple smaller payments spread out over many years. Because the number of payments is fixed, term certain annuities carry less risk for the insurance issuer and can be purchased for slightly less than other types of annuities.