Your Annuity Payout Choice Impacts Retirement Income
When it comes to annuities, one of the most important—and often overlooked—decisions is how you choose to receive your income based on your annuity payout choice. This single decision can significantly impact how much you’ll receive over time, what protections are in place for your spouse or heirs, and how flexible your plan will be if your situation changes.
At Diversified Insurance Brokers, we help clients make informed payout choices that match their unique needs, goals, and family situations.
So, what are your options?
Most annuities offer a menu of payout methods. These typically include:
-
Life Only – Pays the highest income amount, but stops at death.
-
Joint and Survivor – Continues income for your spouse after you’re gone, though at a reduced rate.
-
Period Certain or Life with Period Certain – Guarantees payments for a specific number of years, even if you pass away early.
-
Installment or Cash Refund – Ensures your beneficiaries receive the remaining value if you die before recouping your premium.
-
Guaranteed Lifetime Withdrawal Benefit (GLWB) – Offers flexible income for life, even if your contract value runs out.
Each option trades off income amount, legacy potential, and flexibility.
Request a Quote on our Annuity Request Form
For example:
-
Want maximum income? Life Only provides the biggest paycheck but no protection for your family.
-
Want spousal security? Joint and Survivor ensures ongoing support for your partner.
-
Want to leave something behind? Refund or period-certain options offer peace of mind.
-
Want a blend of flexibility, lifetime income, and protection? That’s where GLWB options shine.
Not sure which path makes the most sense for you?
At Diversified Insurance Brokers, we offer side-by-side annuity comparisons personalized to your age, goals, and risk tolerance. Whether you’re planning ahead or already holding an annuity, we can help you evaluate your payout options to get the most out of your retirement strategy.
Ensure you are receiving the absolute top rates
Current Fixed Annuity Rates
Compare today’s best fixed annuity rates from top carriers.
Current Bonus Annuity Rates
See which annuities offer the highest upfront bonus today.
Request an Annuity Quote
Submit our annuity request form to get personalized rate options.
Lifetime Income Calculator
Use our calculator to see how much guaranteed income your annuity can provide.
Contact Us Today:
Ready to explore insurance and annuity options that offer guaranteed income, principal protection, disability, life insurance, Social Security and Medicare reviews, and long-term financial growth? Let the expert advisors at Diversified Insurance Brokers help you find the right strategy for your retirement goals.
📞 Call us at 800-533-5969
🔗 Visit our annuity rate page here
📍 Contact Us Page
FAQs: Annuity Payout Choices
What is an annuity payout choice?
An annuity payout choice is the way you elect to receive income from your annuity contract. Common options include life-only income, joint-and-survivor income, period-certain payouts, and lump-sum withdrawals. Your choice affects the size of your payments, how long they last, and what happens to remaining value when you pass away.
What is a life-only annuity payout?
A life-only payout provides income for as long as you live. Payments stop when you pass away, even if that happens earlier than expected. Because the insurer is only guaranteeing income for a single lifetime with no extra guarantees, life-only payments are usually higher than options that protect beneficiaries.
How does a joint-and-survivor payout work?
A joint-and-survivor payout provides income for two lives—typically you and a spouse. Payments continue as long as either person is alive. You can often choose a survivor percentage (such as 100%, 75%, or 50%) to continue to the surviving spouse. This option usually pays less than a life-only payout but offers stronger protection for a surviving spouse.
What is a period-certain payout?
A period-certain payout guarantees income for a specific number of years, such as 10, 15, or 20. If you pass away during that period, remaining payments can continue to your named beneficiary for the rest of the guaranteed term. Period-certain options can be used alone or combined with lifetime income (for example, life with 10 years certain).
What is the difference between “life with period certain” and life-only?
Life-only income stops at your death, even if you pass away soon after starting payments. With “life with period certain,” the annuity still pays for your lifetime but also guarantees a minimum number of years of payments to you or your beneficiary. Because of this added guarantee, life with period certain typically has slightly lower monthly income than pure life-only.
Can I change my annuity payout option later?
Once you formally annuitize a contract and select a payout option, the choice is usually irrevocable. Some annuities use income riders instead of annuitization, which may offer more flexibility before income starts. It is important to review your contract and make sure you are comfortable with your payout choice before locking it in.
Which payout option pays the most income?
For the same premium and starting age, life-only income generally provides the highest monthly payout because the insurer is not guaranteeing benefits for beneficiaries. Adding features like joint lifetime income, period-certain guarantees, or cash refund provisions usually lowers the monthly payment in exchange for more protection for spouses or heirs.
How do annuity payout choices affect my beneficiaries?
Your payout choice determines whether any value continues to your beneficiaries after you pass away. Life-only income usually stops at death with nothing remaining. Options like life with cash refund, life with period certain, or period-certain only can provide remaining payments or a refund of unused principal to your beneficiaries.
How do I decide which annuity payout choice is best?
The best payout choice depends on your age, health, need for guaranteed income, other income sources, and how important it is to protect a spouse or leave a legacy. Many people compare several payout options side by side—life-only, joint-and-survivor, and life with period certain—to see how each affects monthly income, survivor protection, and long-term flexibility.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
