What annuity requires annuitization?

A fixed annuity requires annuitization, which is the process of converting the accumulated value of the annuity into a stream of periodic payments. This typically occurs after the accumulation phase, allowing the annuitant to receive guaranteed income for a specified period or for life. During this phase, the annuitant cannot access the lump sum as it is transformed into regular payouts. Other types, like variable annuities, can also require annuitization for income but offer different investment options and risks.