Which term describes an insurance or investment product designed to pay out a stream of payments to the owner at a later time?

• A. Probate estate
• B. Dower
• C. Fair market value
• D. Annuity

Answer: (D)

An annuity is a contract with an insurer that provides a stream of payments to the owner, and it can be arranged to start at some point in the future. This fits the description of an insurance or investment product designed to pay out payments later, often used to secure retirement income. Probate estate refers to assets that must go through probate after a death, not a product that pays over time. Dower is a spouse’s right to a portion of a deceased spouse’s estate, not a payment product. Fair market value is the price an asset would fetch on the open market, not a payment arrangement. Annuity is the term that captures the described concept.