New York State Life Insurance Exam Questions Practice Question
Which of the following products is designed to pay benefits that can provide a stream of retirement income to the purchaser?
Correct Answer: A
Rationale: An annuity contract is specifically designed to provide a steady stream of income during retirement, making it the ideal choice for this purpose. It allows individuals to invest a lump sum and receive periodic payments over time, ensuring financial stability in retirement.
Tax-deferred growth refers to the investment growth that is not taxed until withdrawal, but it does not guarantee a stream of income. Variable life insurance offers a death benefit and cash value growth but is primarily intended for life insurance needs, not retirement income. A modified endowment contract is a type of life insurance with specific tax implications, not a dedicated retirement income product.
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