Lifetime payout option is an annuity income choice in which payments are made for as long as the annuitant, or in some cases both annuitants, live. Unlike fixed period or period certain options, lifetime payout options provide income that cannot be outlived, transferring longevity risk to the insurer. Variations include life only, life with period certain, joint and survivor, and life with refund. The chosen option affects the monthly income amount, with pure life only generally paying the highest amount because there is no guarantee for beneficiaries after the annuitant's death.

In practice, advisors present lifetime payout options when helping clients convert lump sums, retirement accounts, or annuity values into dependable income streams. They compare projected monthly benefits for different payout forms and explain trade offs regarding survivor protection and legacy. For married couples, joint and survivor options may be appropriate so that income continues for the surviving spouse. Advisors also address the irrevocable nature of most payout elections and stress the importance of aligning choices with health, longevity expectations, and other assets. When combined with life insurance, some strategies use a life only payout for higher income while insuring the annuitant's life to protect heirs. By understanding lifetime payout options and their nuances, producers can tailor annuity recommendations that secure essential expenses while preserving flexibility in other parts of the retirement portfolio.