The plan offers a range of annuity payout options to suit the needs of different people. (policybazaar.com)
These tax - free exchanges, known as 1035 exchanges, can be useful if another annuity has features that you prefer, such as a larger death benefit, different annuity payout options, or a wider selection of investment choices. (sec.gov)
It's also worth noting that regular annuity payments (under a regular annuity payout option) from an annuity where the Annuity Starting Date was after 12/31/1986 are taxed under the «exclusion ratio» regime only until all investment in the contract has been received tax free. (blog.annuity123.com)