What event triggers a deferred annuity to start making benefit payments to the Annuitant?

In the context of a deferred annuity, benefit payments to the annuitant begin when the contract is annuitized. This means that the annuitant has chosen to convert the accumulated value of the annuity into a stream of income, which typically occurs at a specified point in time, often during retirement.

Annuitization establishes the terms under which the insurer will make regular payments to the annuitant. This process involves selecting various options related to the payment structure, including the duration and amount of payments, based on factors such as the annuitant's age and gender.

Other options provided do not fulfill the requirement for payment triggering. If the contract were aborted, for instance, it would cease to exist and no payments would be made. Similarly, while the death of the annuitant may lead to the payout of death benefits or a return of accumulated value in some cases, it does not automatically initiate regular benefit payments designed for living annuitants. Lastly, the end of the contract term alone does not trigger payments unless the contract is also annuitized; this term typically refers to the completion of a specific investment period without the transformation into an income stream. Thus, the act of annuitization is pivotal in initiating payments