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"A contract that provides for the liquidation of all or part of an estate through periodic payments is known as?"

a) Life insurance

b) Annuity

c) Endowment policy

d) Group insurance

User Brodney
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Final answer:

An (B) annuity is a financial product that liquidates part of an estate through periodic payments.

Step-by-step explanation:

A contract that provides for the liquidation of all or part of an estate through periodic payments is known as an annuity. Annuities are financial products that offer a way to accumulate savings and then convert that accumulated amount into a stream of payments that are received over a period of time.

This distinguishes it from other options such as life insurance, which is primarily a death benefit with a possible cash value component, or group insurance, which provides coverage to a set group of individuals under a single contract. An endowment policy is a life insurance contract designed to pay a lump sum after a specific term or on death.

User Vladimir Sachek
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