The payout period for an annuity is known as the?

• A. Accumulation period
• B. Annuity stage
• C. Distribution window
• D. Payout interval

Answer: (B)

The payout period is the phase when payments to the owner begin, marking the transition from saving to income. This is commonly called the annuitization stage, since the contract switches from accumulation of funds to a stream of periodic distributions. During the accumulation period, you fund the contract; once it’s annuitized, it starts paying out, with the exact amount and duration determined by the chosen payout options (such as life, term, or joint-life payments). Other terms like accumulation period describe the saving phase, while terms like distribution window or payout interval are less standard and don’t name the formal phase of converting principal into a regular income stream.