Texas Life Agent Practice Exam 2026 – Comprehensive All-in-One Guide to Master Your Certification!

Annuities are designed specifically to provide benefit payments at specified intervals. These financial products are primarily used as a means of retirement income, allowing individuals to receive regular payments for a set period, which can be determined based on the terms of the annuity contract. This structured payout mechanism is a defining characteristic of annuities, distinguishing them from other types of contracts.

In contrast, life insurance policies generally pay out a death benefit upon the death of the insured, rather than regular payments at intervals. Term insurance is a type of life insurance that provides coverage for a specific period but does not offer cash value or guarantee a payout unless there is a death during the term. Whole life insurance also provides a death benefit like term insurance but builds cash value over time, which can be accessed by the policyholder; however, it does not pay out benefits at regular intervals like annuities do.