Annuitization Options
Updated: 29 February 2024
What Does Annuitization Options Mean?
Annuitization options are the ways the owner of an annuity can get paid by the insurance company after the accumulation phase has ended. The preferred payout method often becomes the annuitant’s source of income after retirement.
These are also called annuity payout options.
Insuranceopedia Explains Annuitization Options
The two general options are scheduled withdrawal and lump sum. The first options allows the annuitant to collect monthly payouts, which are divided up according to the annuitant’s life expectancy. The second option provides the annuitant with a single payment for the total amount they are entitled to collect. This latter option is usually chosen if they need the funds for an emergency or want to invest it elsewhere.
Synonyms
Annuity Payout Options
Related Definitions
Related Terms
Related Articles
5 Things You Need to Know About Life Annuities
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Insuring Your Financial Future: the Crucial Role of Accounting in Insurance
Related Reading
What Is Temporary Life Insurance?
Revealing the Most And Least Popular U.S. Insurance Companies
Texas is the state with most people killed by animals in the US
Life Insurance Statistics
How Long Do You Have To Have Life Insurance Before You Die?
Life Insurance Statistics