Listen to a Business English Dialogue About Annuity certain
Ella: Hi Gabrielle, have you heard about annuity certain in business and finance?
Gabrielle: No, I haven’t. What is it?
Ella: An annuity certain is a type of annuity that guarantees a fixed payment at regular intervals for a specific period, regardless of whether the annuitant is alive or not.
Gabrielle: Oh, so it’s like receiving a set amount of money for a set number of years?
Ella: Exactly. Annuity certain provides a predictable income stream for a specified period, making it useful for retirement planning or other financial goals.
Gabrielle: Are there different types of annuity certain?
Ella: Yes, there are fixed annuity certains where the payments remain constant throughout the term and variable annuity certains where payments may vary based on investment performance.
Gabrielle: How are the payments calculated for an annuity certain?
Ella: The payments are calculated based on factors such as the initial investment amount, the length of the term, and prevailing interest rates.
Gabrielle: Can you receive payments from an annuity certain immediately?
Ella: Yes, you can choose to receive payments either immediately or at a later date, depending on your financial needs and preferences.
Gabrielle: What happens if the annuitant passes away before the end of the certain period?
Ella: In that case, the remaining payments may be passed on to a designated beneficiary or estate, depending on the terms of the annuity contract.
Gabrielle: Thanks for explaining, Ella. Annuity certains seem like a reliable way to ensure a steady income.
Ella: No problem, Gabrielle. They provide financial security and peace of mind for individuals planning for their future.