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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Annuitize

Definition:

Annuitize is when a lump sum converts into a series of set income payments delivered on a regular basis over a given period of time. This most commonly happens with retirement plans or life insurance. So you write SnoopyInsurance a check for $500k, and in return they agree to annuitize that amount and pay you $2500 a month for the rest of your life, no matter how long you live, but the benefits stop the moment you do. Eek. If you're one of those people convinced you're gonna Highlander it and live forever, great. However, if you think you might be on the losing end of a Clamor and bite the dust sooner than expected, clearly you aren't going to get the best return on your investment.

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