Fixed Annuity Payouts Without Annuitization

Besides taking a full surrender of your fixed annuity contact, there are a few other options to consider if you desire to have your annuity paid out over a period of time. In some cases, fixed annuity owners may not desire to annuitize their annuity. Therefore, it is important for owners of annuities to understand other options that may be available to them.

Most annuities contracts will allow you, as the contract owner, to requested a fixed amount to be paid over a course of time. For instance, if you desire a monthly payout of $500, the insurance company will send you this amount until your account runs out. Once the amounts falls below the payout amount, most insurance companies will automatically mail you a final payment for the remaining amount. However, keep in mind, most fixed annuities will continue to earn interest during the time that you would be receiving a fixed payout amount.

Instead of receiving a fixed amount, some annuity owners choose to have the annuity paid out to them for a certain period of time. For example, you may choose a monthly payout over the course of one to five years. Once the fixed period is over, the payment and the annuity contract cease to exist.

Unlike annuitization, you can guarentee that you or your named beneficiary will receive the full amount of your fixed annuity when you choose a fixed period or fixed amount payout option. The fixed amount option allows the contract owner to request a specific payout amount (i.e. $100) over a defined interval (i.e. per month), until the annuity has no more money. Conversely, when an annuity contract owner chooses the fixed annuity payout option, a payment will be sent at specific intervals; however, the payments end when the fixed period (i.e. five years) is over.

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