gif (1280 bytes) Q. What form of annuity payouts should I choose?
A. When it s time to begin taking withdrawals from your deferred annuity, you have various choices. Most people choose a monthly annuity-type payment, although a lump sum withdrawal is possible. The size of your monthly payment depends on • The size of the amount in your annuity contract, • Whether there are minimum required payments, • The annuitant s life expectancy, and • Whether payments continue after the annuitant s death. Here are summaries of the most common forms of payment (settlement options). Once you have chosen a payment option, you cannot change your mind. Fixed amount. This type gives you a fixed monthly amount chosen by you -that continues until your annuity is used up. The risk of using a fixed amount option is that you will live longer than your money lasts. Thus, if the annuity is your only source of income, the fixed amount is not a good choice. If you die before your annuity is exhausted, your beneficiary gets the rest. Fixed period. This option pays you a fixed a
