Right now is a better time than any in recent history to take the Cash Option.
Right now you can buy a house. You can buy into the stock market at prices 30-50% off their peak. You can buy foreign currencies at 2002 levels. Even commodities are down!
We may not be at the bottom right now, but the bottom will occur sometime within the next 6-12 months, which means you would also have plenty of time to do some research and find good investments.
Some investments will fail, which is why you split your money up into 50 different things.
This is the best time in the last 10 years to have 100% cash, because their are so many buying opportunities.
Also, right now America is printing money like there is no tomorrow. Inflation will hit, and if you are in an annuity the value of your future earnings will be severely harmed.
Cash up front to put into investments now, perhaps even a little bit into TIPS (Treasury Inflation-Protected Securities, is much much better than an annuity.
If any of you guys win and need investment advice, I would be happy to help.