A type of annuity that guarantees a number of payments, even if the annuitant dies.
If the annuitant passes away during the guaranteed period, a specified beneficiary will receive the rest of the payments. Alternatively, if the annuitant outlives the specified number of guaranteed payments, he or she would continue to receive income payment for life; however, no payments would be available to the beneficiary.
Certain and continuous annuities are a type of guaranteed annuity where the annuity issuer is required to make payments for at least a specified number of year. A common example is a 10-year certain and continuous annuity. In this instance, monthly payments are paid to the annuitant for life in the event the annuitant dies, the designated beneficiary would receive any monthly payments for the remainder of the certain period - in this case, 10 years.
Otherwise, if the annuitant lives beyond the 10-year period, he or she will continue to receive monthly payments for life; however, after the 10-year period, the beneficiary would no longer be eligible for monthly payments.
Also called C&C Annuity.