Which of the following best describes "Annuity Payout Options"?

Annuity payout options refer to the various ways that an individual can receive their funds once they have reached the annuity phase. During this phase, the annuitant typically has the choice to receive payments in different formats, such as a lump sum, fixed installments, or lifetime payments. This flexibility allows them to select an option that best fits their financial needs and retirement strategy. Understanding these payout options is crucial for individuals planning for retirement, as they directly affect cash flow, tax implications, and financial security in later years.

The other options relate to different aspects of annuities: investment choices prior to annuitization, methods to calculate interest, and policies regarding the surrender of an annuity, but they do not accurately describe the payouts one receives from an annuity during the payout phase.