What is the primary feature of a straight life annuity?

A straight life annuity is designed to provide a steady stream of income for the lifetime of the annuitant. The primary feature of this type of annuity is that it pays a predetermined amount until the annuitant passes away. This means that as long as the individual is alive, they will receive regular payments, ensuring a predictable income source without any concern for external factors like market fluctuations.

The structure of a straight life annuity is straightforward: it focuses solely on the life of the annuitant, and there are no additional features like death benefits or guaranteed minimum payment periods involved. Once the annuitant dies, payments terminate, which distinguishes it from other annuity types that may provide for payments to beneficiaries or continue for a specific duration after death.

Thus, the characteristic of paying a fixed amount until death aligns perfectly with the definition and purpose of a straight life annuity, making this the correct answer.