What is defined as a contract that provides income for a specified period of years or for life?

An annuity is a financial product designed to provide a stream of income over a designated period, which can be for a certain number of years or for the entirety of a person’s life. This makes it a popular choice for retirement planning, as it ensures that individuals can receive regular payments that can help cover living expenses.

Annuities work by converting a lump sum of money into a series of payments, effectively allowing the contract holder to manage their income over time. Depending on the specific terms of the annuity, it can provide guaranteed payments regardless of market conditions, adding a level of security for the annuitant.

The other terms in the options refer to different concepts. An endowment is a type of life insurance that provides a payout at the end of a specific term or upon the insured's death, but it does not typically function as an income stream. The owner of an insurance policy is the individual who holds the policy, while a beneficiary is the person designated to receive the policy's benefits upon the insured's death. Thus, annuity distinctly defines a contract that focuses on providing income over time.