An annuity is an insurance product that provides guaranteed income for a specific period of time, or for life. An annuitization is the process of converting an annuity contract into a stream of payments.

##### What are the three basic phases in the life of an annuity?

There are three basic phases in the life of an annuity: accumulation, payout, and liquidation. During the accumulation phase, the annuity owner makes periodic payments into the annuity. This money is then invested, and the annuity grows over time. During the payout phase, the annuity owner begins to receive payments from the annuity. These payments can be made on a monthly, quarterly, or yearly basis, and they continue for as long as the annuity owner lives. Finally, during the liquidation phase, the annuity is cashed in and the proceeds are paid out to the annuity owner or their beneficiaries.

### What are the two phases of an annuity?

1. The accumulation phase: During this phase, the annuity's owner makes periodic payments into the annuity. The money that is paid in accumulates, and earns interest.

2. The payout phase: During this phase, the annuity's owner begins to receive periodic payments from the annuity. The payments are typically made for a set period of time, or for the rest of the annuity's owner's life.

##### How do annuities pay out to beneficiaries?

Annuities typically pay out to beneficiaries in one of two ways:

1. The annuity contract may specify that upon the death of the annuity holder, the remaining balance of the annuity will be paid out to the named beneficiary in a lump sum.

2. The annuity contract may specify that upon the death of the annuity holder, the remaining balance of the annuity will be paid out to the named beneficiary in installments over a period of time, typically lasting for the life of the beneficiary. Do annuities have term limits? Yes, annuities have term limits. An annuity is a financial product that pays out a fixed income stream over a set period of time. The term of an annuity contract can vary, but most annuities have a term of 10, 20, or 30 years.

Can you annuitize a life insurance policy? Yes, you can annuitize a life insurance policy. This means that you can convert the policy into an annuity, which is a regular income stream that is paid out over a period of time. The length of time over which the annuity is paid out will depend on the terms of the policy, but it is typically for a period of 10-20 years.