Glossary

Life-only annuity

An annuity that pays income for one person's lifetime and stops at death, with no refund or payments to heirs, in exchange for the highest payout.

Also called: straight life annuity, single life annuity, pure life annuity

A life-only annuity, also called a straight life or single life annuity, pays a guaranteed income for as long as the annuitant lives and nothing after that. There is no death benefit, cash refund or minimum number of payments. It's the simplest payout form of an immediate annuity and the one that produces the largest check per dollar.

The higher payout comes from mortality pooling: money left behind by annuitants who die early helps fund payments to those who live long. Say, hypothetically, $100,000 buys a 70-year-old $680 a month life only, versus $620 a month with a 10-year period certain. If the buyer dies after two years, life only has paid about $16,000; if they live to 100, it has paid about $245,000.

Life only suits someone whose main worry is outliving their money and who has other assets or life insurance for heirs. The obvious risk is early death, which leaves most of the premium with the insurer, and fixed payments lose buying power to inflation. Adding a period certain, cash refund or survivor option lowers the payment but guards against that outcome. See single premium immediate annuities and are annuities a good idea?.

Last reviewed October 4, 2026

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Related terms

Immediate annuity An annuity bought with a lump sum that starts paying income within about a year, for life or a set period, in exchange for giving up access to the money. Period certain An annuity payout feature that guarantees payments for a set number of years, paying a beneficiary if the annuitant dies before that time is up. Joint and survivor annuity An annuity that pays income for as long as either of two people lives, often at a reduced amount after the first death, such as 50% or 100%. Annuitization Converting an annuity's account value into a stream of guaranteed payments for life or a set period, usually giving up access to the lump sum. SPIA An annuity bought with one lump sum that starts paying guaranteed income within a year, often for life, in exchange for giving up access to the money. Annuitant The person whose life expectancy determines an annuity's payments; lifetime income is usually measured by that person's life.

Related guides

What happens to an annuity when you die How death benefits work before and after payouts begin, what beneficiaries receive, how the money is taxed, and which payout options leave nothing behind. Deferred income annuities (DIAs): longevity insurance explained A DIA is bought now and pays guaranteed income starting years later. How pricing, payout options and QLACs work, the risks, and who it suits and doesn't. Single premium immediate annuities (SPIAs): how they work A SPIA turns a lump sum into income that starts within a year. How payout options, pricing, inflation and taxes work, and who a SPIA suits and doesn't. Structured settlements and selling future payments How structured settlement annuities work, why selling payments costs so much, and what IRC section 5891 and state court-approval laws require.

Related annuity companies

TIAA Retirement-plan annuity giant for teachers, professors and nonprofit workers: TIAA Traditional and CREF in 403(b) plans, plus IRA annuities.

Related tools

Annuity payout calculator Estimates monthly income from an immediate annuity, paid for a fixed period or for life on average U.S. mortality, to sanity-check real quotes.