Question

The conversion of the account balance of a deferred annuity contract to income payments is termed as?

Q: Answer-The conversion of the account balance of a deferred annuity contract to income payments is termed as...

Annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuities may be annuitized for a specific period or for the life of the annuitant. Annuity payments may only be made to the annuitant or to the annuitant and a surviving spouse in a joint life arrangement. Annuitants can arrange for beneficiaries to receive a portion of the annuity balance upon their death.