In a flexible premium deferred annuity, what directly affects the annuity benefit payments?

The annuity benefit payments in a flexible premium deferred annuity are closely tied to the annuitant's age because this factor directly influences the life expectancy calculations used in determining the payout amounts. When an annuitant begins receiving payments, the insurance company assesses various risks, including how long they are expected to live. Older annuitants typically receive higher monthly payments because their life expectancy is shorter compared to younger individuals.

While the investment amount, market performance, and the insurance company's rates do play a role in the overall value and potential growth of the annuity, they do not directly dictate the payment amounts once an annuity is activated. The age of the annuitant when the payments begin is a crucial determinant in calculating the annuity benefit payments and ensuring that the payouts are actuarially sound.