what is annuitization 
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 understanding annuitizationthe concept of annuitization dates back centuries but life insurance companies formalized it into a contract offered to the public in the 1800s individuals can enter into a contract with a life insurance company that involves the exchange of a lump sum of capital for a promise to make periodic payments for a specified period or for the lifetime of the individual who is the annuitant 