What is accurate concerning an Individual Straight Life annuity?

An Individual Straight Life annuity is designed to provide guaranteed payments to the annuitant for their entire lifetime. This means that as long as the annuitant is alive, they will continue to receive payments, regardless of how long that may be. This type of annuity is beneficial for individuals seeking to ensure a steady stream of income throughout their retirement years, allowing them to budget and manage their finances based on predictable income.

The other options do not accurately describe the nature of a Straight Life annuity. For instance, payments being made for a fixed term is characteristic of a term certain annuity, where payments cease after a predetermined period, regardless of whether the annuitant is alive or not. Payments varying based on investments pertains to variable annuities, which have returns dependent on the performance of underlying assets. Lastly, the statement about payments stopping upon the death of a beneficiary does not apply here; rather, the annuitant receives payments during their lifetime, but the payments stop upon their death, making it essential to understand the specific terms of such an annuity and its design.