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Also known as a Period Certain Annuity. Fixed Period Annuity is a term used to describe a specific payout option for an Immediate Annuity contract. When an annuity distribution period begins or the annuitization begins, the annuitant can choose distributions over a fixed period of time.
Here, the settlement options offer a way to spread the tax burden of a large gain over several years. Life insurance is purchased to provide financial security for your family if you are not around to provide that for them. Picking the wrong settlement option can significantly reduce the benefit of a policy. It can mean the difference between a lifetime of secure income or money squandered on a few luxuries. Do not neglect this important aspect of life insurance planning.