Which of the following options best describes a Straight Life Annuity?

A Straight Life Annuity is designed to provide guaranteed payments to the annuitant for as long as they live, ensuring a steady income stream throughout their lifetime. This feature is particularly beneficial for individuals who seek financial security during retirement, as it eliminates the risk of outliving their resources.

The guaranteed lifetime payments mean that regardless of how long the annuitant lives, they will continue to receive distributions. This type of annuity does not provide any survival benefit to heirs after the annuitant's death, which differentiates it from other types of annuities that may include payout periods or cash surrender options.

While the other options mention characteristics that pertain to different types of annuities (such as fixed period payouts, cessation of payments upon death, and variable payments linked to market performance), they do not accurately encompass the essence of what a Straight Life Annuity provides. The focus of this annuity type is solely on delivering consistent, lifetime income to the annuitant.