In this completely unfiltered video, Shawn from The Annuity Expert breaks down the exact definition of annuitization: the process of converting a lump sum into an irrevocable stream of payments for life or a fixed period. Shawn explains that when you annuitize, you permanently hand over your money to the insurance company—meaning if your circumstances change, you cannot get your principal back.

However, Shawn reveals a critical industry secret: for 9 out of 10 modern annuity contracts, annuitization is completely optional.

Shawn walks through the history of how consumer lawsuits in the late 1990s forced insurance carriers to innovate. Instead of forcing retirees to annuitize, carriers created Guaranteed Lifetime Withdrawal Benefit (GLWB) riders. A GLWB provides the exact same lifetime income guarantee as annuitization, but allows you  ...