Which type of annuity is suitable for someone seeking guaranteed monthly income for life?

The correct answer is a registered annuity as it provides the option for a guaranteed income stream, which can be structured to last for the lifetime of the annuity holder. Registered annuities are typically attached to registered accounts like RRSPs or RRIFs in Canada, which can offer tax-deferred growth and strategic income options.

By opting for a lifetime payout option, individuals can ensure they receive monthly income for as long as they live, protecting against the risk of outliving their resources. This aligns perfectly with the need for guaranteed monthly income for life.

The other types of annuities do serve specific purposes but do not focus primarily on providing guaranteed income for the lifetime of the individual. A term-certain annuity does offer periodic payments but only for a specified term, not guaranteeing payments for life. Variable annuities see income amounts fluctuate based on the investment performance of the underlying assets, introducing risk to the monthly income. Family income benefit annuities provide payments to beneficiaries upon the death of the annuitant but do not necessarily offer guaranteed income for life to the annuitant themself.