What Does Straight Life Annuity Mean?
A straight life annuity is an investment contract that make regular payments to the annuitant for the rest of their life. Upon death, the payments stop, and you cannot designate a beneficiary with this type of insurance. Typically, you buy one and make regular payments during your working life or pay a single lump sum, usually after retirement.
Insuranceopedia Explains Straight Life Annuity
A straight life annuity offers you a way to earn income during retirement and often costs less than other forms of life insurance. However, you cannot pass it along to any beneficiary once you pass away. Therefore, it can represent somewhat of a risk to getting the most out of your money. Often, people without children or close family choose this type of annuity.