Annuitize refers to the process of converting the accumulated capital in an annuity into a series of periodic payments. These payments can be for a fixed amount, over a fixed period, or for the lifetime of one or more annuitants, ensuring a guaranteed income stream that cannot be outlived.
An annuity is a financial contract in which the purchaser makes an upfront payment to an insurance company in exchange for regular, structured payments either for a specific period or for the remainder of the purchaser's life.
