What is the primary reason many investors prefer the straight-life payout option in variable annuities?

Many investors prefer the straight-life payout option in variable annuities primarily because it provides the maximum cash flow of all payout options. Under this arrangement, payments are made to the annuitant for their entire lifetime, which can lead to higher monthly payments compared to other options like joint-and-survivor payouts or period-certain payouts. This choice is particularly appealing to those who prioritize maximizing their income during retirement and are confident in their longevity.

While other payout options might offer features such as lower fees or additional flexibility in withdrawals, they often come with trade-offs in terms of the amount of income received during the annuitant's lifetime. The straight-life option focuses primarily on delivering the most substantial income stream available, which is a significant consideration for many retirees looking to ensure that they have sufficient funds to maintain their desired lifestyle throughout retirement.