Annuity Payment Options

As there are no added alternatives in the contract this annuity payout option typically provides the largest periodic payments and the annuitant receives periodic payments usually monthly over his or her lifetime.

Annuity payment options. The two most common annuity payout options are immediate tax-deferred. You can choose a lump sum payment. On the other hand one may decide to receive variable payments tying payments to the performance of some underlying portfolio.

The payment options differ in what happens after you pass away. Beneficiaries inheriting an annuity typically have three options for how to receive annuity payments after the contract owners death. The annuity stops and no death benefit is payable to a beneficiary-ies.

You can elect to receive annuity payments for the duration of your life after which your beneficiary may be eligible to receive payments. Joint and Survivor Many couples will opt for the joint and survivor annuity payout option. Monthly benefits are paid to a beneficiary-ies for the remaining number of months in a guaranteed period.

The 4th possible income annuity contract that requires annuitization is the Deferred Income Annuity. Payout options for annuities include a lump sum a series of payments distributed over a specific time period or guaranteed payments for life. However in other cases the.

Clients can choose to receive their payments. Immediate annuities can payout within a year of purchase. Beneficiary Payout Options Lump-Sum Distribution.

This is a one-time lump sum payout upon the death of the annuity owner or annuity owners. The Client chooses the payment frequency at issue and cant change it. Deciding which option is right for you depends on your retirement needs.