How Do Life Annuities Work? 
Life annuities can be immediate annuities -LRB- a lump sum is paid into the annuity and payments begin immediately -RRB- or deferred -LRB- payments are made into the annuity on a regular basis until annuitization begins -RRB- . The person receiving payments from the annuity chooses to receive them for the rest of their life . If their life would end after a short time , their may be a guaranteed feature to get back at least what they paid in . In any event , the annuity pays until death occurs . 