What is a characteristic of a level (fixed) premium annuity?

A level (fixed) premium annuity is designed to provide a consistent and predictable income stream, which is especially valuable during retirement. This type of annuity involves the payment of regular premiums over time, or it may involve a single premium that establishes the annuity. Regardless of the method of payment, the focus is on creating a fixed income that retirees can rely on.

In the context of the options presented, the characteristic of regular payments made to fund retirement reflects the primary purpose of such an annuity. It underscores the idea of providing financial stability through consistent payouts, making it an attractive option for individuals planning their retirement income.

The other choices lack the defining features of a level premium annuity. For instance, while some annuities may allow for flexible premiums, a level premium annuity is specifically characterized by a fixed premium structure. An upfront payment is more associated with a single premium annuity rather than defining a level premium style. Lastly, payments typically commence during the annuitant's lifetime rather than after their death, which is more characteristic of certain life insurance products rather than the annuity itself.