What Is Annuity Exclusion Ratio? 
The exclusion ratio is the portion of an annuity that is a return of basis or original contribution starting of the first payment amortized to the annuitants expected mortality and is , as basis , nontaxable . The exclusion ratio is used in lifetime payout schedule or life time annuitization . Almost any annuity can be annuitized for the life of the annuitant . 