What type of annuity pays out benefits during the annuitant's lifetime without returning unused premiums?

A life annuity is designed to provide income payments to the annuitant for the duration of their lifetime. The distinguishing feature of this type of annuity is that it guarantees payments until the annuitant dies, which means that once the annuitant passes away, no further payments are made and any remaining unpaid balance or unused premiums is not returned to the beneficiary or estate. This characteristic is what allows the life annuity typically to offer higher periodic payouts compared to other annuity types, as the insurer assumes the risk of the annuitant living longer than expected.

In contrast, a fixed annuity guarantees a specified payout amount over a predetermined period or for the life of the annuitant but does not inherently disregard unused premiums in the same way as a life annuity; the annuitant may have options that could return unused premiums. A deferred annuity defers income payments until a future date, and thus does not pay benefits during the life of the annuitant immediately. A joint annuity, which covers two lives, typically makes provisions for payments until both beneficiaries have passed, and may return unused premiums after the death of the second person, depending on the structure chosen.

Thus, the life annuity is the option that most