New Jersey Life Producer Practice Exam 2025 – Your Complete All-in-One Guide to Exam Success!

Question: 1 / 400

What is the name given to a contract that provides income to an insured until their death?

Accidental Death Policy

Life Insurance Policy

Endowment Policy

Income Annuity

The contract that provides income to an insured until their death is referred to as an income annuity. An income annuity is designed to generate a stream of payments for the individual, typically until they pass away. This is particularly important for individuals seeking financial security in retirement, as it guarantees a regular income.

In contrast, other options like an accidental death policy primarily cover specific circumstances of death, and do not provide ongoing income. A life insurance policy generally pays a death benefit to beneficiaries rather than direct income to the insured. An endowment policy usually provides a lump sum after a specific period or at death, rather than ongoing income. Thus, the characteristics of an income annuity align perfectly with the requirement of providing continuous payments until the insured's death.

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