When it’s time to start receiving income from your annuity, you have several payout options to choose from. Each carries different tradeoffs between income amount, duration, and survivor protection. Understanding these options before you buy is important — some choices are irrevocable once made.
Life Only (Straight Life)
Provides the highest monthly payment, but income stops at death — even if you pass away shortly after payments begin. Best for those in excellent health with no dependents who need survivor income.
Life with Period Certain
Guarantees payments for your lifetime, with a minimum guaranteed period (typically 10 or 20 years). If you die before the period ends, payments continue to your beneficiary for the remainder. Slightly lower payment than life only, but adds protection against dying early.
Joint and Survivor
Covers two lives — typically you and your spouse. Payments continue for both lifetimes, with survivor payments at 50%, 75%, or 100% of the original amount depending on what you select. The right choice for most married couples who need to protect the surviving spouse.
Period Certain Only
Pays income for a fixed number of years regardless of whether you’re alive. If you die early, payments continue to your beneficiary. This is a fixed-term payout, not a lifetime income option.
Guaranteed Lifetime Withdrawal Benefit (GLWB)
Rather than annuitizing, many modern fixed indexed annuities offer a GLWB income rider. This provides guaranteed lifetime income without permanently surrendering your contract value. You continue to own the contract, retain access to remaining funds, and your heirs receive any remaining account value as a death benefit — a significant advantage over traditional annuitization.
Call us at 1-888-972-0024 to compare payout options and run income illustrations from top carriers.