An annuity period is the time when the owner of an annuity begins to receive payments from the insurance company. The insured usually gets paid monthly, quarterly, semi-annually or yearly depending on the annuity contract.
The annuity period is also called known annuitization, the phase in the annuity where the insurance company begins to pay the annuitant, the owner of the annuity. The annuitant may be paid for the rest of his or her life, or for a specific number of years. Usually, the annuitant gets a lump sum, after which, based on life expectancy as one of the factors, the insurer determines the length of the periodic income payment. The annuitant then receives a monthly, quarterly, semi-annual or annual income. Payment stops when the annuitant dies, unless he or she has assigned a beneficiary.
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