How often is it typical for annuity payments to be made, based on Q's payment structure?

Annuity payments can be made on various schedules, including monthly, quarterly, semi-annually, or annually. In this context, the most common practice is to make payments quarterly, which allows for a balance between providing regular income and managing the overall payout structure. Quarterly payments mean that the holder of the annuity receives a payment every three months, which can help manage personal cash flow effectively.

Monthly payments, while common in some situations, can complicate the financial planning process for both the insurance company and the annuity holder due to the increased frequency. Similarly, while annual and semi-annual payments are options, they typically result in larger lump-sum payments less frequently, which may not cater to the immediate income needs of the annuitant. Therefore, a quarterly payment structure stands out as a typical choice for convenience and regularity in financial planning.