Life · Chapter 9 · Payout Options
Straight (Pure) Life Annuity
Definition
Income for the annuitant's life only — no refund, no survivor benefit. Because nothing is held back for guarantees, it pays the HIGHEST monthly income of all options, but carries the greatest risk: die after one payment and the insurer keeps the rest.
Exam tip
More guarantees = smaller checks. Straight life (no guarantees) pays the most; add a period-certain or refund and the payment drops. Also: women live longer, so a woman's monthly payment is SMALLER for the same money.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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