At an earlier time, deferred annuities only offered two choices once you were ready to begin receiving income. The contract could be converted to the payout phase known as annuitization. However, these yesteryear annuities would generally only provide income for the duration of your life, but would leave nothing to beneficiaries upon your demise. The alternative option to annuitizing, was the surrender of your contract, meaning that you would get your earnings and premiums back in one sum, (minus expenses), and owing taxes on that income. Once you selected either option, changing your mind was not an option. Since then, an array of options for annuity payout have been added offering appealing options of liquidity and flexibility, even though the main purpose remains to provide income during retirement. Such payout options are additionally available with immediate annuities.

For example, quite a few annuity policies are now allowing you to accept a life annuity within a certain period, that guarantees payments for the duration of the period, in the event that you pass-away before then. In addition, numerous contracts that render income continue for a definite period, rather than for the duration of your life. Under certain circumstances, with some contracts, payments can be accelerated. This means that after annuitization begins, you may withdraw a sum amount, as opposed to receiving continuous regular payments. Although changing your mind can only be an option with certain varieties of payout plans, there is undeniable flexibility should there be a change in your life situation.