Which type of annuity allows the owner to switch to a fixed annuity during the payout period?

A variable annuity allows the owner to switch to a fixed annuity during the payout period because it offers flexibility in investment choices and payout options. In a variable annuity, the cash value can fluctuate based on the performance of underlying investments, typically mutual funds or other investment portfolios. This characteristic allows the annuity owner to have the option to convert to a fixed annuity if they desire more stability or predictability in their income during retirement. This conversion can be particularly appealing during times of market volatility when the owner may prefer the assurance of fixed payouts rather than the uncertainty of variable returns.

The other types of annuities mentioned do not offer this same conversion flexibility during the payout period. An equity indexed annuity and a fixed dollar annuity have their own fixed or indexed payout structures without allowing an option to switch to another type. A life annuity with refund typically provides guaranteed payments for the lifetime of the annuitant but doesn't include a conversion feature to switch to a different payout structure. Thus, the variable annuity stands out due to its adaptable nature regarding payout options.