What is a characteristic of a Life Annuity Certain?

A Life Annuity Certain is designed to provide guaranteed payments over a predetermined period, regardless of whether the annuitant is alive or deceased. The correct choice emphasizes that this type of annuity ensures payments for a fixed time, which can be particularly attractive for individuals who want assurance of receiving income for a specific duration.

While some life annuities can provide for lifetime payouts with potential benefits for beneficiaries, a Life Annuity Certain specifically prioritizes guaranteed payouts for the contracted term, making it distinct from other annuity options that continue for the lifetime of the annuitant. Other characteristics, such as varying payments linked to interest rates or the concept of refunds upon death, are not applicable to this type of annuity, further clarifying why the selected answer accurately captures the defining feature of a Life Annuity Certain.