PSI Ohio Insurance Practice Exam 2026 – All-in-One Guide to Exam Success

An annuity certain is designed to guarantee benefit payments for a predetermined period, regardless of whether the annuitant is alive or not at the end of that period. This means that as long as the annuity contract specifies a fixed time frame, the payments will continue for that duration. Consequently, the recipient is assured of receiving income over that specified time, which can be beneficial for budgeting and financial planning purposes.

In contrast, other annuity types have different characteristics. An annuity due involves payments that are made at the beginning of each period, whereas an immediate annuity begins payments almost right after the premium is paid, typically within the first year. A life annuity provides payments for the lifetime of the annuitant, which means there is no guaranteed payment period if the annuitant passes away earlier than expected. Therefore, the defining feature of an annuity certain is its explicit guarantee of payments for a set number of years, making it the correct choice in this scenario.