An “annuity-certain” refers to an annuity where the periodic payments are guaranteed to be made for a specified and predetermined period, regardless of whether the annuitant lives or dies during that period.

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The payments are fixed and continue for the agreed-upon duration, ensuring a specific income stream for a set timeframe.

On the other hand, “contingent annuities” involve payments that are contingent on certain events or conditions. These conditions might include the survival of the annuitant, the occurrence of specific events, or other contingencies. Contingent annuities introduce variability into the payment schedule, and the timing or amount of payments may depend on the outcomes of specified conditions.

In summary, the key distinction lies in the certainty of payments: annuity-certain guarantees payments for a predetermined period, while contingent annuities introduce variability based on specified conditions.