Annuity Period
What Does Annuity Period Mean?
An annuity period is the time when the owner of an annuity begins receiving payments from the insurance company. The payments are typically made monthly, quarterly, semi-annually, or annually, depending on the terms of the annuity contract.
Insuranceopedia Explains Annuity Period
The annuity period, also known as annuitization, is the phase in the annuity when the insurance company begins making payments to the annuitant, the owner of the annuity. The annuitant may receive payments for the rest of their life or for a specific number of years. Typically, the annuitant receives a lump sum, after which the insurer determines the length of the periodic income payments based on factors such as life expectancy. The annuitant then receives payments on a monthly, quarterly, semi-annual, or annual basis. Payments cease upon the annuitant’s death unless a beneficiary has been designated.
