What type of annuity provides income that cannot be outlived by the owner?

A Straight Life Annuity is designed to provide payments for the lifetime of the annuitant, ensuring that the individual receives income that cannot be outlived. This type of annuity allows the owner to potentially receive payments until death, regardless of how long they live. If the annuitant passes away shortly after starting the annuity, the payments cease at that point, and no further benefits are paid to beneficiaries. However, for those who live longer than average life expectancies, they can receive significantly more in payments than what they initially invested.

In contrast, a Term Annuity provides payments for a specific period and does not guarantee income beyond that term, meaning it can indeed be outlived by the owner. A Joint Life Annuity typically covers two individuals and provides income until both parties have passed, which might be suitable for couples but does not guarantee lifetime income for just one individual. Deferred Annuities are designed to accumulate funds over time and do not provide immediate income, focusing instead on future payouts, which are not guaranteed to last for life. Thus, the Straight Life Annuity stands out as the only option that guarantees income that cannot be outlived by the owner.