Guarantee Period

In the context of annuities, the guarantee period is the period of time the annuity pays out a guaranteed amount. If, for example, an annuity holder chooses a 10-year guarantee period, the annuity pays out for 10 years to the annuity holder in retirement or, if the annuity holder dies, to a nominated person until the end of the guarantee period. Long guarantee periods reduce the value of annuities.