Straight Life Annuity

A straight-life annuity is a retirement investment where one can get the highest monthly benefit for life as an employee. Still, it does not provide any death benefit protection.

It is a monthly payment series that continues for as long as one life.

No one knows how many years of payment will be required, and the benefit is divided into a payment that is based on the average life span of someone. 

It gives a higher retirement income instead of continuing benefits for the beneficiary.  So in case of the insured's death, one may not get anything. 

How to apply?

To invest, one has to put in a lump sum of cash and complete the paperwork that guarantees regular income.  

The payments are made monthly depending on age and long-term interest rates.

For those who apply through investing for a monthly income calculator in old age, the periodic income can be good as the insurance company assumes that people in old age have less time to live.

One can set up a joint annuity where the proceeds can be lower than a single annuity.

One can add indexing and other features depending on their earnings.

If bought with IRA 401(K), you pay tax based on normal rates. 

Advantages - 

Straight life has many advantages, as it is about security and consistency.  

The money is spent on stock markets, liquid assets or other areas to earn by the insurance provider. However, the insured gets a fixed income and is unaffected by market volatility. 

Drawbacks- 

One may feel restricted if they want to invest in options where liquidity is required or if they want to have control over the way the funds are spent.