What is the purpose of a life with period certain payout option?

The life with period certain payout option is designed to provide both income security for the annuitant and a safety net for beneficiaries. This option guarantees that payments will be made for a specified period, regardless of whether the annuitant is alive or deceased during that time. If the annuitant passes away before the end of the guaranteed period, the remaining payments are made to beneficiaries or heirs. This ensures that the investment in the annuity does not completely go to waste if the annuitant dies prematurely, while also providing assurance of income for a designated span. Therefore, the focus is on both providing lifetime income for the annuitant and ensuring that there is a guaranteed payout for a predetermined timeframe, thus balancing the security of funds for the annuitant and the potential needs of their beneficiaries.