Which statement accurately describes an Individual Straight Life annuity?

An Individual Straight Life annuity provides guaranteed payments to the annuitant for the remainder of their life. This means that no matter how long the annuitant lives, they will continue to receive payments until their death, ensuring a steady income stream throughout their lifetime. This feature provides a sense of financial security, as it removes the risk of outliving one's income.

The other options refer to characteristics that define different types of annuities. For instance, payments made for a fixed term relate to term annuities, which only pay for a specified number of years regardless of the annuitant's lifespan. Contingent payments based on market performance and varying payments connected to investment choices describe variable annuities, where the income can fluctuate depending on the underlying investments. These distinctions highlight the unique nature of a Straight Life annuity in ensuring lifetime payments without dependency on external factors.