How Annuities Work: Straight Life
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A straight life annuity is probably the simplest for of annuities you can buy. They are based on providing income until death. This type of annuity is less expensive because there is no other type of component to this insurance. The less time that an annuitant is expected to live, the higher the annuity will be. There is no form of payout offered to the annuitants beneficiaries upon his/her death.
Once you understand how annuities work, you know that compared to an annuitant who has a greater life expectancy, payouts per pay period are increased for annuitant with low life expectancy. Life annuities pay a pre-determined amount until death and the term annuity pays a pre-determined amount until the product expires