Understanding Annuities: Annuity Income Options

At retirement, annuity income can be structured in a variety of ways, enabling you to select the income option that best satisfies your unique needs. While you can surrender an indexed annuity and receive a lump-sum payment equal to the annuity value, many people elect to convert the annuity value into a stream of retirement income using one of these income options:

Life Income Option

Life Income with Period Certain Option

Life Income with Refund Guarantee Option

Joint-and-Survivor Option

Period Certain Option (no guarantee of lifetime income)


While these are the five basic annuity income options, some annuity contracts offer additional flexibility…ask your licensed financial adviser about contract features that may add flexibility to your use of an annuity to provide retirement income.

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