After the decision to annuitize, the specified payout option is typically not changeable. True or False?

• A. True
• B. False
• C. Only if the insurer approves
• D. Only for certain age groups

Answer: (A)

When you decide to annuitize, you convert the accumulated value into a stream of payments and pick a payout form (for example, life-only, life with period certain, or joint and survivor). Those terms are set at the moment annuitization begins because the insurer uses actuarial calculations to determine how much will be paid and for how long. Once payments start, the contract is largely irreversible—the payout form is fixed to ensure the math behind the stream stays consistent. Changing the payout option after annuitization would require undoing the annuity or issuing a new contract, which isn’t normally allowed. So the statement is true: after the decision to annuitize, the specified payout option is typically not changeable.