Which annuity option provides the highest monthly income for the lifetime of the annuitant?

The choice that provides the highest monthly income for the lifetime of the annuitant is the Life Income option, also known as Pure or Straight Life. This type of annuity guarantees that the annuitant will receive regular income payments for as long as they live, regardless of how long that may be. Because the payments cease upon the annuitant's death, this option maximizes the monthly benefit during their lifetime since all of the annuity payment is designed to be used up during that period.

In contrast, other annuity options generally have different structures that can result in lower monthly payments. A Variable Annuity links payments to the performance of underlying investments, which can be unpredictable, often leading to fluctuating income amounts that could potentially be lower than the fixed options. A Fixed Annuity offers guaranteed payments but may not yield as high a payment as the Life Income option, primarily because it often includes a death benefit feature that provides payments to beneficiaries after the annuitant's death. Lastly, a Survivorship Annuity is designed to provide benefits to a survivor, typically resulting in lower monthly payments for the annuitant as it must account for the future payouts to the surviving beneficiary.

The Life Income option efficiently allocates funds to provide