Which type of annuity payout option pays a fixed amount until the contract value is exhausted?

The fixed amount payout option is designed to provide the annuitant with a consistent payment that remains the same over time. This means that the annuitant will receive a predetermined sum at regular intervals, such as monthly or annually, until the total value of the annuity contract has been depleted. Importantly, this type of option is beneficial for individuals who prefer stability and predictability in their income, as it allows them to manage their finances based on a reliable cash flow.

In contrast, the variable amount option would fluctuate based on the performance of underlying investments, which does not guarantee a fixed payment. The lifetime amount option provides payments for the duration of the annuitant's life, which could result in payments continuing beyond the contract's value if the individual lives longer than expected. The inflation-adjusted amount would increase over time according to inflation rates, which may lead to varying payment amounts. Therefore, the fixed amount option distinctly fulfills the requirement of providing a set payment until the contract is exhausted.