What is an Annuity Date?

Shawn Plummer

CEO, The Annuity Expert

What is an Annuity Date?

What is the annuity date? The annuity date is also known as the annuity commencement date is the day on which annuities are payable. This means that annuity payments will be made on this day every year until the annuitant passes away. Annuitants often receive a regular income from annuities, and annuity dates are important to keep track of for them!

Understanding the Annuity Date

An annuity date is the day that you will start to receive money from an annuity. To get a guaranteed monthly income, you can convert an annuity through an irreversible process called annuitization.

When the annuity commencement date has arrived, the annuity will automatically be annuitized. If an insurance company annuitizes an annuity, they will give you monthly payments for a certain amount of time or for a person’s lifetime.

When annuitize an annuity, the money cannot be turned back into a lump sum, and the asset is no longer yours. The insurance company will contact the annuitant before the annuity commencement date to make sure that it is still what they want.

The people who have an annuity will often roll it over if they don’t need the money it provides.

Most people don’t annuitize their annuity.

An annuity avoids the probate process under most circumstances. If someone dies, this means that the annuity’s death benefit can be given to their family quickly.

Annuities Types That Use Annuity Dates

Annuity commencement dates are applicable to annuity plans that require annuitization. Those annuities are:

Annuities Types That Do Not Use Annuity Dates

Since most annuity owners do not annuitize their contracts, annuity commencement dates don’t apply much. Instead, owners utilize the lifetime income rider to generate a guaranteed income for life or penalty-free withdrawals to take money from the annuity account periodically. Those annuities are:

What Do My Beneficiaries Receive When I Die?

If the annuity owner dies before the annuity date, the annuity’s balance will be provided to beneficiaries. If the owner dies after the annuity date, the beneficiaries may or may not receive a death benefit depending on the payout selected by the owner.

Helpful tip: If you want to leave money to your beneficiaries, life insurance might be a better option for you. In some cases, you don’t need to take a medical exam. Use our free tool to shop online insurance quotes. Coverage starts at $9.37 per month.

Find Out More About Annuity Commencement Dates

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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