If you buy a fixed annuity you eventually may "annuitize" your contract, converting its value to a lifelong income stream. Another option is to accept a lower monthly payment that will last as long as either you or your spouse is alive.
Alternatively, you can choose to receive payments over a specified period or guaranteed period. For example, you might ask for payments to continue over your lifetime or for 10 years, whichever is longer. If you die before 10 years, your beneficiary will receive the remaining payments.
No matter how you annuitize your contract, you will receive cash flow that’s partly tax-sheltered. Each payment will include a tax-free return of principal until all of your money has been returned. Subsequent payments will be fully taxable.