An
annuity in which a designated
beneficiary receives payments for a certain number of years upon the death of the
insured. For example, a husband may purchase a life income policy in order to provide for his wife (the beneficiary) upon his death. The payments begin upon the death of the insured and terminate a stated number of years later. If the beneficiary does not survive the full number of years, a contingent beneficiary receives payments instead. As with all annuities, the insured must purchase it before payments are made, either by a
lump sum or periodic payments made through one's
working life.