Which of the following statements is TRUE regarding straight-life payouts from a variable annuity?

The correct statement regarding straight-life payouts from a variable annuity is that the amount of the payment to the customer is not guaranteed. Variable annuities are designed to allow individuals to invest in various underlying investment options, which means their value can fluctuate based on market performance. As a result, the income received from a variable annuity will vary depending on the performance of the investments chosen.

In the case of a straight-life payout, the payments continue for the lifetime of the annuity holder, but the amount received each period can change. This variability stems from the fact that the principal is invested in markets, and thus the payout is subject to the market's ups and downs. Unlike fixed annuities, which provide guaranteed payouts, variable annuities inherently involve investment risks that affect the payment amounts.

Provisions like guaranteed minimum withdrawals may exist in some variable annuity contracts, but these features do not alter the inherent nature of the payouts depending on market conditions. Therefore, it is crucial to understand that while an investor could potentially earn higher returns, the amount they receive is not guaranteed, setting it apart from fixed payout options.