annuitizes

Makes regular payments

Annuitizes is the third-person singular of annuitize, meaning to convert a lump sum into a series of regular payments over time.

The term appears primarily in retirement and insurance contexts: When she annuitizes her 401(k), she'll receive monthly income for life.

The process trades a one-time amount for guaranteed periodic distributions.

pension

retirement

Leaving the workforce permanently

pensionRetiree's ongoing benefit
401(k)Tax-advantaged retirement savings account
IRATax-advantaged retirement fund

superannuation · retiree · vesting · payout · disbursement · drawdown · decumulation · longevity · seniors · elderly

payments

installments

Periodic partial payments

distributionsActs of parceling out
periodicOccurring at intervals
monthlyOccurring each lunar cycle

quarterly · stream · cashflow · disbursement · payout · remittance · schedule · term · duration · guaranteed

conversion

principal

Chief school administrator

premiumAdded cost for better
capitalizationUsing big letters properly
transformationThorough change in form

structuring · purchase · contract · policy · immediate · deferred · variable · fixed · indexed · systematic

insurance

underwriting

Risk evaluation and acceptance

actuarialOf risk calculation
mortalityState of eventual death
carrierOne that transports

issuer · guarantor · solvency · reserves · regulation · contract · rider · surrender · fees · commissions

Opposites

payment structure

annuitizescashes out

Converts holdings to money

liquidates · commutes · redeems · surrenders

accumulation vs. distribution

annuitizesaccumulates

Gathers in increasing quantity

saves · contributes · invests · deposits · capitalizes

Family

annuitize, annuitizing

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