The amount of income produced by the "income rider" will depend on several factors, primarily the age of the policyholder at the time they opt for income, the specified accumulation rate and the length of time the "income pool" has been given to accumulate. Each time an income payment is paid to the policyholder, the indexed annuity account value is decreased by that same amount. "Income riders" that provide lifetime income are generally used as a means of allowing a policyholder to supplement their income, especially in retirement, without the possibility of outliving their money because even if the indexed annuity's account value falls to zero, the income payment from the "income rider" will continue until the death of the policyholder. If the policyholder dies and funds remain in the indexed annuity account value, those funds would be paid to the beneficiary(-ies). Some of these income riders are offered with no fees, while others carry an annual fee (generally 1% or less) which is deducted directly from the indexed annuity account value.
As with all traditional fixed annuities, money can be withdrawn from an indexed annuity at any time (but such withdrawal may be subject to a surrender charge if the policy is still within the surrender charge period and the penalty-free withdrawal has already been exhausted). Owners may also choose to receive a payment based on the value of the policy for their lifetime (called annuitization).