Guaranteed Term

is an annuity insuring that the person who purchases an annuity (the annuitant) continues to get income that will last the rest of their lives, on top of which is guaranteed for a certain amount of years even if the annuitant dies prematurely. Essentially this safegaurds the savings of the person to a certain degree because if they agree to a minimum term of 15 years and die the day following the purchase of the annuity their family will still recieve payment for the next 15 years.