Guide Select Annuity Payments

1Determine the annuity's purpose.
It may have been created to provide for a vacation house, extended travel or as part of your retirement income.
A lump sum annuity payment may help you save a significant amount in mortgage interest if you will be using it for a major purchase like a house.
You will probably prefer monthly annuity payments if you will be using it as income and have grown accustomed to a monthly or biweekly paycheck.

2Consider your other sources of income and your typical expenses.
For instance, taking a quarterly distribution may be more appropriate for your needs if you itemize on your federal income tax returns and pay quarterly taxes.
Those who have multiple retirement income streams such as other investments, Social Security benefits or rental property income may choose quarterly or biyearly annuity payments for traveling or property maintenance and repair.

3Decide what will happen to any remaining balance upon your death.
You may be able to choose a joint-and-survivor annuity payment option if you are married. This will bequeath the balance to your surviving spouse.
You may be able to earn enough interest on your invested annuity so that the principal will remain untouched. This will indicate that you are only drawing off the earnings in the form of a yearly annuity payment. In this case, you may want to put the annuity into a trust for your heirs.