With no dependents, a life annuity would provide the highest lifetime benefit. A life annuity option guarantees that payments will continue for life. The selection of the AIR is unique to a variable annuity and requires a high degree of knowledge about the subject. The AIR is the most significant component in the conversion factor for a variable annuity. A poor decision could result in receiving less than the maximum possible benefit.
All variable annuities require an AIR as the basis for the initial and subsequent payments.
Also, the AIR will have a significant impact on the initial payment level and on the pattern of subsequent payments. If actual investment returns are exactly to the AIR, then the payment amount will not change. If actual investment returns are greater than the AIR, then the payment amount will increase. If investment returns are less than the AIR, payments will decrease. Favorable investment performance will result in increase under all AIRs.