What is the term for a contract that provides a stipulated sum payable at regular intervals during a person's lifetime?

An annuity is a financial product that provides a series of payments made at regular intervals for a specified period or for the lifetime of the individual. This arrangement allows the individual to receive a steady income stream, often used during retirement, where the funds can provide financial stability. The typical structure of an annuity involves converting a lump sum payment or series of payments into a fixed or variable income for the annuitant over their lifetime or until a certain term is reached.

In contrast, an insurance policy primarily focuses on offering coverage for specific risks, such as death, illness, or property loss, rather than providing regular income. An investment plan usually centers on growing wealth over time through investments in various vehicles, such as stocks or bonds, rather than guaranteeing regular payouts to the individual. A term contract typically refers to specific time-based agreements that cover a designated period, often associated with insurance or leasing but not structured to provide ongoing payments throughout a person's life.