GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Annuitization

Synonyms:	annuitize, capitalization, draw, receive payments, subsidization
Filed Under:	annuities, estate-management, financial-banking, investments
Tags:	annuity, banking, investment

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

annuitant An individual who owns or is the recipient of an annuity.
annuitization options The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.
annuity A financial instrument that disperses a number of payments over a set period of time.
annuity consideration The payment(s) made by an individual in order to accumulate value in an annuity.
life expectancy method A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
private annuity An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.
reverse mortgage 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.
single premium deferred annuity (SPDA) A deferred annuity funded with a single payment.