Annuitization is the process of converting an annuity's accumulated value into a stream of income payments. Once you annuitize, you typically cannot access the lump sum — you receive only the income payments. Annuitization options include: life only, life with period certain, joint and survivor, and period certain.
Key Points
- Annuitization: convert accumulated value to income payments
- Once annuitized: typically cannot access the lump sum
- Life only: income for life, no death benefit
- Life with period certain: income for life, minimum period guaranteed
- Joint and survivor: income for life of both spouses