What characterizes a Straight Life Annuity?

• A. Pays a fixed amount for life, then ends on death
• B. Pays until annuitant's death; there is no death benefit
• C. Guarantees payments for a set term
• D. Payments continue as long as both spouses are alive

Answer: (B)

A Straight Life Annuity provides income for the lifetime of the person receiving it and ends at that person’s death, with no death benefit or continuation to a beneficiary. You receive payments as long as you live, but once you die, there are no further payments. This makes it distinct from options that guarantee payments for a fixed term, or that continue payments if a spouse is alive (joint survivor), or that include a death benefit. So the defining idea is that payments go to the annuitant for life and stop at death, with no death benefit.