The best thing you can do for yourself is see a local independent financial adviser. That person will help you understand all the factors you need to pay attention to. This is much more than just numbers.

This is a tough question as you don’t know what huge expenses you will encounter and how long you will live. You can make estimates, but don’t forget to factor in inflation.

You would have to first estimate how long you will receive the annuity (when will you die) in order to determine the cash value.

It is a little like a mortgage. The home cost is the annuity value. You know the payments. The mortgage is paid when you die. The interest is what the going rate is for annuities.

Here is a calculator.