Temporary Annuity
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Some annuities can be bought where the income is paid only for a fixed term, eg. For 5 or 10 years. These are most often used in conjunction with Single Premium Bonds and Endowment/ Unit Linked Savings Plans.
Most temporary annuities are designed to be payable for either a fixed period, or the annuitant’s lifetime, whichever is shorter. If the annuitant survives the fixed period, the annuity ceases, as it does if he dies during that period. |
