If you choose to annuitize your contract, you trade the value of your contract for the issuing company's guarantee to make payments to you for a certain period or for your lifetime.

Many options are available to help you customize your personal retirement income plan. You should discuss your options with a licensed financial professional, and you may also wish to consult a tax adviser. Consider their advice and your options carefully because your decision to annuitize is final, and your choice generally cannot be changed in the future.

Income for life
You can choose to receive income payments that will never run out, no matter how long you live. The amount you'll receive depends on your account value and life expectancy for people of your age and gender. A drawback to this guarantee is that payments stop at death, even if the total of the payments is less than the amount you converted when you annuitized your contract.

Income for life-two annuitants
A joint-and-survivor option guarantees income payments for as long as either you or your spouse (the annuitant or the co-annuitant) is alive. This may be an option if you want to be sure the surviving spouse also has income for life. Payments are based on the considerations explained above.

Income for a specific time period
You can receive income for a certain period, such as 5, 10, or 20 years. The amount of each payment depends on your account value and the time period you choose. This can help you bridge the gap between the end of one income source and the start of another.

Income of a specific amount
Some companies let you lock in a guaranteed amount for each income payment. The number of payments you receive is based on your account value and other factors. You may need additional sources of income when this payment option ends.

Life with a specific time period guarantee
This option will guarantee an income for your lifetime, but if you die before a specified time period, your beneficiary will receive income payments until the period ends.

Other options
In addition to those explained above, annuitization options are available to suit a broad variety of needs and life situations. Your licensed financial professional can help explain other options that may be appropriate for you.

Two ways to take your payments
When selecting a guaranteed income option, you may be able to choose between two types of payments; some companies offer a combination of these.

Fixed annuitization
The amount of your income payments is set at the time you annuitize your contract. It will not change. You will enjoy consistent, level income payments, but depending on economic factors, the payments may not keep pace with inflation.

Variable annuitization
(Available on some variable annuities only)

Your income amount is set at the time you annuitize, but may change based on the market performance of the investment options you choose. This option offers the potential for a rising income that may outpace inflation, but also offers the possibility that a declining or stagnant economy could affect your monthly income. Some companies offer a guaranteed minimum return to protect you from severe declines.