Temporary Annuity

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 annuitantís lifetime, whichever is shorter. If the annuitant survives the fixed period, the annuity ceases, as it does if he dies during that period.