There are two different types of Annuities regarding payout timing: Immediate Annuity and Deferred Annuity:
1.    Immediate Annuity:
Payments from an Immediate Annuity can begin as soon as one month of the initial deposit. Typically payments occur within the first year of the initial premium deposit. An Immediate Annuity is designed to turn a lump sum of money into a series of guaranteed payouts.
2.     Deferred Annuity:
Payments from a Deferred Annuity begin after a specified period of time.  A Deferred Annuity is designed to accumulate money on a tax deferred basis, until the annuitant chooses a date when income payments may begin.

There are three different categories of annuities: Fixed Annuity, Variable Annuity and Fixed Indexed Annuity:
1.    Fixed Annuity:
The initial premium is deposited into an account and earns a guaranteed rate of interest for a specific time period, for example 1, 3, 5 or 7 years. Once the initial time period of the contract ends, a new guaranteed interest rate is set for the next period.
The return of principal is guaranteed based on the financial strength and claims paying ability of the insurance carrier.

For example: Kelly Smith puts $100,000 into a Traditional Fixed Annuity with a Guaranteed annual interest rate of 3.5%. During the accumulation period her contract will grow 3.5% per year. At the end of year one of her contract, her contract value will be $103,500.

2.    Variable Annuity:
The initial premium is invested in stocks, bonds, or other sub-accounts that increase and decrease based on market performance. The return on your premium will vary based on the performance of the sub-account of your Variable Annuity.
A major difference between a Fixed Annuity and a Variable Annuity is that with a Variable Annuity the return of Principal will vary based on the return of the underlying investments within the sub-accounts and is not guaranteed. 
For example: Kelly Smith puts $100,000into a Variable Annuity invested in the S&P Index. During contract year one, the S&P decreases 4%. At the end of year one, her contract value is now $96,000.
3.    Fixed Indexed Annuity:
A Fixed Indexed Annuity, also known as an Equity Indexed Annuity, is a combination of a Fixed Annuity and Variable Annuity. A Fixed Indexed Annuity provides the guarantees found in Fixed Annuities combined with the opportunity to participate in market gains found Variable Annuities.

A key advantage of a Fixed Indexed Annuity is it allows upside potential by participating only in the gains of a market, while guaranteeing protection of principal if they market declines in a contract year.

Whether you choose an Immediate Annuity or Deferred Annuity you have several distribution options to choose from: Interest Only, Installments for Guaranteed Period, Installments for Life, Installments for Life for Guaranteed Period, Installments for Selected Amount or Joint and Survivor.
1.    Interest Only:
Gives you the option of receiving interest-only payments for a specific period of time.

2.    Installments for a Guaranteed Period:
Gives you the option of receiving equal payments for a specified period of time.

3.    Installments for Life:
Gives you the option of receiving equal payments for the rest of your life. The payments will end upon your death.

4.    Installments for Life with a Guaranteed Period:
Gives you the option of receiving equal payments for the rest of your life. If you die within a specified period of time the remaining balance will be paid to your beneficiary.

5.    Installments for a Selected Amount:
Gives you the option of receiving equal payments based on an amount you choose. The payments will continue until your accumulation value is zero.

6.    Joint and Survivor:
Gives you the option of receiving equal payments for the rest of your life. When you die the payments will continue to be paid to your beneficiary for the rest of their life based on the selection of 100%, 75%, 66% or 50% of the original payment.