In many cases you can choose to receive your annuity payouts in a lump sum instead of regular payouts. Will you be living on your annuity payouts? If so you might enjoy the security of regular payments, like a paycheck.
However if your annuity is supplementing a steady retirement fund, you might want the payout in one lump sum so you can buy a retirement home, travel, pay off bills, or do anything else you had in mind.
Also, be aware of the fees attached to purchasing an annuity. All financial institutions charge fees for the administration of your payments, but some may offer different rates and packages than others.
Do you want the option to withdraw a small amount of money from your annuity before the payout phase begins? If so, be sure and let your agent know so you can have this type of clause written into your contract.
And in the event that you must surrender your annuity contract to the agent, be aware that different types of annuities handle this situation in different ways. You can choose a medical bailout provision that would negate charges and fees for surrendering your annuity in the event of illness.
And other bailout provisions can protect you from a surrender charge if the contract's renewal interest rate falls below a specific point. This ensures that your annuity will benefit from a competitive interest rate, and protect you from unforeseen changes in the market.