By selecting the period-certain annuitization option, the annuitant is usually able to receive a higher monthly payment than with the life option. This extra income comes with a price though: the risk that the annuity payments will run out before the annuitant's death. For example, say a 65-year-old annuitant decided to start receiving payments from his or her annuity, and chose a 15-year period-certain payout option. This which would provide him or her with a retirement income until the age of 80. Should the annuitant die at or before age 80, this option would not present a problem, but should he or she be expected to live longer than 80 years and not have another source of retirement income, this option could prove too risky.
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