How do fixed annuities pay out?

Fixed annuities pay out through a series of regular payments to the annuitant, typically after a specified accumulation phase. The payments can be structured in various ways, such as immediate or deferred, and can be monthly, quarterly, or annually. The payout amount is usually determined by the principal investment, the interest rate guaranteed by the annuity, and the chosen payout period. Once the payout begins, the annuitant receives a stable income, which can continue for a fixed term or for their lifetime, depending on the contract terms.