When can the owner of a deferred annuity choose a settlement option?

The owner of a deferred annuity can choose a settlement option at any time prior to annuitization. This flexibility allows the owner to make decisions regarding how they want to receive their payouts as they approach the annuitization phase. Typically, during the accumulation phase of a deferred annuity, the owner can select different settlement options based on their needs and financial goals.

This choice takes place before the contract is converted into an income stream, which occurs at annuitization. Being able to make this decision beforehand allows the owner to consider various factors such as their financial situation, projected future income needs, and the various types of settlement options available.

The other choices do not accurately represent the timeline for selecting a settlement option. For example, the option of choosing only at annuitization restricts the flexibility that deferred annuities provide, while claiming that it can only happen after the first premium payment oversimplifies the process. Additionally, suggesting that the option is only available at the end of the deferral period limits the owner's ability to make informed decisions based on changing circumstances prior to annuitization.