What is the definition of Annuitization?
Annuitization refers to the process of changing an annuity investment and turning it into a succession of periodic payments. These payments may be done either annually, quarterly or monthly. Depending on the kind of annuity selected, the payments may continue for life, for a number of years, or a combination of both. For lifetime annuities, there is also the option of having the regular payments for up to the lifetimes of two annuitants (such as a husband and wife). That means that the annuitants have a guaranteed income that they cannot outlive. The payment only stops when the annuitants pass away.
The regular payments may not necessarily be paid out to the annuity owner - it may go to that person's estate, to the insurance company or to a selected trust.
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- Annuity
- Annuity Accumulation Phase or Period
- Annuity Administrative Charges
- Annuity Beneficiary
- Annuity Certain
- Annuity Contract
- Annuity Contract Owner
- Annuity Cost
- Annuity Date
- Annuity Death Benefits
- Annuitant
- Annual Statement
- Annual Annuity Contract Fee
- Alternative Markets
- Alternative Dispute Resolution (ADR)
- Allied Lines
- Alien Insurance Company
- Aleatory Contract
- Agent
- Agency Companies