Temporary Life Annuity

What Does Temporary Life Annuity Mean?

A temporary life annuity makes regular payments to the annuitant until the set expiration date or until the annuitant dies.

Insuranceopedia Explains Temporary Life Annuity

Most annuity contracts either have a set expiration date or make payments for life. Since a temporary life annuity combines both, on average it makes fewer payments than a regular annuity. As a result, it typically costs less. However, the annuitant needs to make sure that they have income after the temporary life annuity expires. It would be a good option for someone who retired early and wanted some extra monthly income until they become old enough to begin collecting Social Security, for instance.