Which statement accurately describes an Individual Straight Life annuity?

An Individual Straight Life annuity is designed to provide payments to an annuitant for the duration of their life. This structure ensures that the individual receives a steady stream of income until they pass away, offering a sense of financial security. This type of annuity is significant for those looking to establish lifetime income, as it eliminates the risk of outliving their savings. The payments are generally fixed and do not change with market performance or vary based on any external factors. This characteristic aligns with the annuity's purpose of providing predictable income throughout the annuitant's lifetime.

In contrast, the other statements describe different types of annuities or income structures that do not reflect the fundamental premise of a Straight Life annuity. For instance, payments made until a specific date or for a fixed term indicate limitations on the duration of payments, which is not characteristic of a Straight Life annuity. Similarly, payments that vary based on earnings are more aligned with variable or indexed annuities, whereas a Straight Life annuity maintains consistent payments regardless of market conditions.