What is a true statement about an individual straight life annuity?

An individual straight life annuity is designed to provide payments to the annuitant for the duration of their life. This means that as long as the individual continues to live, they will receive regular annuity payments, which offer a steady stream of income and are particularly beneficial for retirement planning.

The structure of a straight life annuity emphasizes the lifetime benefit to the annuitant, providing financial security without the worry of the payments stopping short of their lifetime. Once the annuitant passes away, the payments cease and do not extend to beneficiaries or dependents, thus differentiating it from annuities that provide payments over a specified period or to a beneficiary upon the original annuitant's death. This element highlights the focus on the life of the annuitant, making the statement about payments being made for life true and central to the function of this type of annuity.