A Straight Life Annuity is characterized by which feature?

• A. Payments continue to a beneficiary after death
• B. Payments cease at death and cannot be paid to a beneficiary
• C. Payments are guaranteed for a fixed period to a beneficiary
• D. Payments increase with inflation indefinitely

Answer: (B)

A straight life annuity pays for the lifetime of the annuitant and ends at death, with no payments continuing to a beneficiary. This is why the defining feature is that payments cease when the annuitant dies and cannot be paid to anyone else. It typically offers the highest periodic payment because the insurer is not guaranteeing payments after death.

This differs from options that would extend payments to a beneficiary (such as a period-certain or survivor benefit) or from plans with inflation-adjusted or indefinitely growing payments, which require different features or riders.