---
title: "What Is Annuitization? Definition | Epic Life Glossary"
description: "Annuitization is the process of converting an annuity's value into a stream of regular income payments. Payments may last for life or for a set number..."
url: https://epicline.preview.multisites.ai/glossary/annuitization
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Annuity terms

# Annuitization

Annuitization is the process of converting an annuity's value into a stream of regular income payments. Payments may last for life or for a set number of years, depending on the option chosen.

## Why it matters

Annuitization is usually an irrevocable choice, so the owner generally gives up access to the lump sum. In return, the insurer promises payments that can last for life. The amount depends on the account value, age, payout option, and rates when payments start. Options include life only, period certain, and joint and survivor. Many owners choose not to annuitize and take withdrawals instead. Taxes apply to the earnings part of each payment.

Source: [investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/annuitization)

[Read next, for familiesAnnuities explained: fixed, fixed-index, MYGA, income riders and surrender charges](https://epicline.preview.multisites.ai/annuities)

## Where we use this term

-   [Fixed vs fixed index annuity: how do they work and who do they fit?](https://epicline.preview.multisites.ai/guides/fixed-vs-fixed-index-annuity)

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