Annuitization

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • annuitize
  • receive payments
  • capitalization
  • subsidization
  • draw

Definition of Annuitization

  1. The process of converting an annuity or retirement plan into income through either periodic income payments or a single lump-sum payment.

Related Terms and Acronyms

  • Reverse Mortgage Definition, Important,
    • A loan that allows an older homeowner to convert built-up equity into cash. The loan comes due when the owner dies, sells the house or moves out.
  • Annuitization Options Definition,
    • The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.
  • Life Expectancy Method Definition,
    • A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
  • Annuity Consideration Definition,
    • The payment(s) made by an individual in order to accumulate value in an annuity.
  • Annuitant Definition,
    • An individual who owns or is the recipient of an annuity.
  • Annuity Definition,
    • A financial instrument that disperses a number of payments over a set period of time.
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
  • Single Premium Deferred Annuity (SPDA) Acronym,
    • A deferred annuity funded with a single payment.
  • Private Annuity Definition,
    • An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.
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