A variable annuity contract owner can annuitize the account's cash value under which of the following payout options?

A variable annuity contract owner has the flexibility to choose between different ways to receive payments from their account's cash value, which includes both fixed and variable payout options.

With the fixed payout option, the annuitant receives a predetermined amount of money on a regular basis, ensuring stable payments regardless of market fluctuations. This appeals to individuals who prefer the security of knowing exactly how much they will receive each period.

On the other hand, the variable payout option allows the payments to fluctuate based on the performance of the underlying investment options chosen within the annuity. This provides potential for growth, as the payouts can increase if the investments perform well, but it also comes with a higher level of risk.

By enabling contract owners to select either the fixed or variable payout option, or even to transition between them, the variable annuity offers a customizable approach to retirement income. This is beneficial as it aligns with varying financial goals and risk tolerances that might change over time. Therefore, having the option of both fixed and variable payouts gives annuity owners the flexibility to choose how they want to obtain their disbursements based on their individual circumstances.