Whether you're buying an immediate annuity or converting a deferred annuity into income payments, your options are essentially the same. You can choose to receive payments monthly, quarterly, semi-annual or in annual installments. You receive a specific amount or choose a specified period of time in which to receive payments. You can choose an option that will guarantee income payments for as long as you live.

The most popular income options are:

"Life Only" or "Straight Life" - Income payments are guaranteed for as long as you live. At death, income payments stop. This option may be a good choice if you think you will live longer than the average life expectancy.

Cash Refund - Payments are guaranteed for life. Plus, if you die before all of your original purchase payment has been returned to you, your beneficiary(ies) receives the balance in a lump sum.

Installment Refund - Similar to cash refund option, except in this case, your beneficiary continues to receive income payments until the principal has been returned in full.

"Period Certain" - Income payments are guaranteed for a specified period of time. If you die before the end of the "period certain," payments continue to your beneficiary(ies).

"Life with Period Certain" - Income payments are guaranteed for a specific number of years. Plus, payments continue beyond the "period certain" for as long as the annuitant lives.

"Joint and Survivor" - Based on the lives of two people, income payments continue until the death of both annuitants. The plan can be structured so that upon death of the first annuitant, payments continue in the same amount or a lesser amount.