Annuity
A financial product offered by insurance companies that delivers a steady stream of payments to the annuitant for a specified duration or for their lifetime. While not strictly life insurance, it's often offered by the same companies and used for retirement planning.
Detailed Explanation
Annuities can be immediate (payments start soon after purchase) or deferred (payments begin at a future date). They can provide a guaranteed income stream in retirement.
Practical Example
After retiring, Lisa used a portion of her savings to purchase an immediate annuity. This provides her with a steady monthly income for the rest of her life, helping her cover her living expenses.
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