What is a payment plan where the same payments are made over a period of time to fund an annuity?

A level premium payment plan is characterized by consistent, fixed payments made over a specified period to fund an annuity. This type of payment structure provides predictability for individuals as they can budget for the same amount to be paid at regular intervals, whether that be monthly, quarterly, or annually. The advantage of this approach lies in its simplicity and the ease of financial planning for the policyholder, as the amount remains constant regardless of market fluctuations or changes in the individual's financial circumstances.

In contrast, a flexible premium payment plan allows for varying payment amounts, which can adapt to the policyholder's financial situation but lacks the predictability that comes with level premium payments. A single premium payment entails a one-time, lump sum payment to fund the annuity, rather than spreading payments over time. Lastly, a family income policy is primarily a type of life insurance that provides regular income to the insured's family in the event of the policyholder's death, rather than a direct payment structure for an annuity. This further clarifies why the level premium payment is the most appropriate answer in this context.