Annuitize

The act of converting the accumulated value of an annuity into payments paid to the annuitant. When you annuitize, you waive the opportunity to receive the annuity’s value in a lump sum in exchange for periodic payments (typically monthly) that last for a set number of years, called “term certain” or for the rest of the annuitant’s life. Payments can also be set as “joint and survivor” to provide income for the combined lifetimes of the annuitant and the annuitant’s spouse. See Annuitization, Bonus Annuity, Fixed Annuity, Immediate Income Annuity, Variable Annuity

Glossary