What is a defining feature of life annuity products?

A defining feature of life annuity products is that they guarantee income for a specified term or for the lifetime of the annuitant. This is essentially the primary purpose of an annuity, which is designed to provide a steady income stream, helping individuals manage their finances during retirement or other stages of life where consistent income is desired.

This feature addresses the financial need for individuals to ensure they do not outlive their savings, offering peace of mind and security in their financial planning. This is particularly critical as people are living longer, and having a reliable income source can help maintain their quality of life.

While some annuities might have a cash value component or might require periodic premium payments, these characteristics are not universally defining across all life annuity products. The key aspect that distinguishes them is the promise of regular payments for the duration of the annuitant's life or for a predetermined period.