Life · Chapter 9 · Purpose & Phases
Annuitization
Definition
Exchanging the accumulation fund for a guaranteed income stream. Once annuitized, the decision is IRREVOCABLE — the contract can no longer be surrendered and funds can't be freely withdrawn.
Exam tip
⚠️ Annuitization cannot be undone. After it, no surrender, no free withdrawals — you traded the pile of money for the paycheck.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms