Annuity Payment Option

Annuity Payment Option

Either of two ways that one may elect to receive payments from an annuity. One may receive a fixed dollar amount each month, guaranteeing payments but exposing the annuitant to inflation risk. On the other hand, one may decide to receive variable payments, tying payments to the performance of some underlying portfolio. One generally decides which annuity payment option one wishes to receive upon purchasing the annuity.
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PAYMENT OPTION: The winner, who chose the annuity payment option, will receive 26 annual payments which start at $200,000 for the first payment and graduate to $408,000 by the 26th payment.
1 If the Life with Emergency Cash Annuity Payment Option is chosen, the maximum surrender charge is 4% during the annuitization phase.
They have developed into an attractive insurance product that offers a comfortable middle ground between fixed income predictability and equity portfolio exposure, while still preserving other valuable features, such as death benefits and guaranteed annuity payment options.
In addition to professional management, variable annuities offer tax-deferral on any investment earnings, death benefit protection and a choice of annuity payment options.
A commonality between both fixed and variable annuities is an "annuitization" feature, which means that an annuity owner can choose from several annuity payment options, including a lifetime income option that provides a guaranteed stream of income for life.
Annuity Payment Options -- A wide range of annuity payment options
Phoenix Home Life Mutual Insurance Company has introduced Phoenix Income Choice(SM), an innovative single-premium immediate annuity that offers significant flexibility and tax benefits through a choice of annuity payment options.