Which annuity pays out for the duration of the annuitant's life and does not include a death benefit?

Which annuity pays out for the duration of the annuitant's life and does not include a death benefit?

• A. Life Annuity - Cash Refund
• B. Straight Life Annuity
• C. Life Annuity, Increasing Income
• D. Deferred Annuity

Answer: (B)

A straight life annuity is a life‑only contract: you receive payments for as long as you live, and there is no provision to continue payments after death or to refund any remaining principal to a beneficiary. This means there’s no death benefit attached—if you die early, payments stop and nothing is paid to heirs. The option that includes a cash refund provides a death benefit to beneficiaries if the annuitant dies before receiving the total premium, which is why it’s not the correct match. A life annuity with increasing income still pays for life but switches to higher payments over time, and a deferred annuity starts payments at some point in the future rather than immediately, neither of which fits the “no death benefit and lifetime payout” criterion as cleanly as straight life does. Therefore, the best answer is the straight life annuity.

A straight life annuity is a life‑only contract: you receive payments for as long as you live, and there is no provision to continue payments after death or to refund any remaining principal to a beneficiary. This means there’s no death benefit attached—if you die early, payments stop and nothing is paid to heirs. The option that includes a cash refund provides a death benefit to beneficiaries if the annuitant dies before receiving the total premium, which is why it’s not the correct match. A life annuity with increasing income still pays for life but switches to higher payments over time, and a deferred annuity starts payments at some point in the future rather than immediately, neither of which fits the “no death benefit and lifetime payout” criterion as cleanly as straight life does. Therefore, the best answer is the straight life annuity.