What type of annuity guarantees payments for a specified period?

An annuity certain is designed to provide guaranteed payments for a specified period, irrespective of the recipient's lifespan. This means that the payments will continue for a predetermined number of years, offering recipients a reliable source of income for that duration. If the annuitant passes away before the end of the term, the remaining payments may be directed to a beneficiary or may be forfeited, depending on the terms of the annuity contract.

The other types of annuities serve different functions. A variable annuity fluctuates based on the performance of underlying investments, thus not guaranteeing a fixed payment period. A life annuity, on the other hand, ensures payments for the lifetime of the annuitant, which means payments may extend beyond any specified period. A deferred annuity involves a delay in receiving payments, allowing the investment to grow before triggering payouts. Each of these other annuity types has unique features, but only an annuity certain guarantees payments over a specifically defined timeframe.