What is a Temporary Life Annuity?

A temporary life annuity is one which provides for fixed payments until the earlier of the death of the annuitant(s) or the end of a specified number of years. To compute the annuity exclusion ratio, expected return is found by multiplying one year’s annuity payments by a multiple from the appropriate IRS annuity table.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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