Which annuity payout option provides the highest periodic income?

The life income payout option provides the highest periodic income because it guarantees payments for the lifetime of the annuitant, regardless of how long they live. This option effectively minimizes the risk of outliving one’s resources, as the annuitant receives a steady income stream as long as they are alive.

In contrast, other payout options tend to provide lower periodic payments due to different risk-sharing structures. The joint and survivor option pays out during the lifetimes of both annuitants, often resulting in reduced payments since the income must be distributed over two lives. The period certain option guarantees payments for a specified period, but if the annuitant dies before the period ends, the payments stop or go to beneficiaries, reducing the income level. The refund life option includes a provision to return a certain amount to beneficiaries if the total payouts do not equal the original investment, which can also lead to lower periodic payments during the annuitant's lifetime.

Therefore, the life income option stands out by maximizing cash flow for the individual receiving the annuity, making it the choice that provides the highest periodic income.