Final answer:
A Single Life Annuity provides guaranteed income for the life of the policyholder, but stops after their death, unlike other retirement benefits like pensions or Social Security, which may continue to provide benefits under different circumstances.
Step-by-step explanation:
A Single Life Annuity is a financial product typically used for retirement planning. It offers a guaranteed stream of income for the life of the policyholder, but payments cease upon their death. Single Life Annuities contrast with other retirement plans like cash-value (whole) life insurance, which features both a death benefit and a cash value component that can be used by the policyholder for various needs. The Social Security Act, as amended, provides old-age insurance benefits, and private firms may offer pensions, which are akin to annuities funded by the firm's pension fund to provide fixed annual payments to retirees. While these firm-funded pensions and Social Security benefits contribute to retirement income, it's important to note that a Single Life Annuity is focused on providing a predictable income solely during the lifetime of an individual, with no benefits continuing after their death.