What financial product would typically be suitable for a retired individual looking to invest a lump-sum amount through an insurance company?

An annuity is a financial product that is particularly suitable for a retired individual looking to invest a lump-sum amount through an insurance company. Annuities are designed to provide a steady stream of income, often during retirement, which can be critical for managing living expenses when one is no longer earning a regular wage. By making a lump-sum payment, the retired individual can benefit from various payment options, such as immediate income or deferred income, depending on their financial needs and timeline.

Furthermore, annuities can also offer tax-deferred growth, meaning that the money invested can grow without being taxed until it is withdrawn, making them advantageous for retirement planning. This characteristic makes annuities appealing for someone looking for stability and predictable income in their post-retirement years.

In contrast, other options such as term life insurance are primarily focused on providing a death benefit rather than income generation. Whole life insurance and universal life insurance also have a death benefit component and may accumulate cash value, but they are not primarily designed for providing income during retirement in the same way that annuities are. Thus, for a retired individual aiming to invest a lump-sum amount with the goal of securing income, an annuity is the most appropriate choice.