What is the term for the period during which an annuitant receives income payments from an annuity?

The term for the period during which an annuitant receives income payments from an annuity is known as the annuitization period. This phase follows the accumulation period, during which the annuitant has contributed funds into the annuity and those funds have grown, typically tax-deferred.

During the annuitization period, the insurer converts the accumulated value of the annuity into a stream of income payments that can last for a specified time frame or even the lifetime of the annuitant, depending on the contract terms. This process is crucial as it defines how the annuitant will receive their funds, moving from savings growth to income distribution, which is the primary purpose of an annuity.

The accumulation period refers to the time when the money is being deposited and invested, and the surrender period relates to the time frame during which an annuitant may withdraw funds from the annuity without facing penalties. The free look period is a specified time frame after purchasing an annuity during which the investor can review the contract and cancel it without penalty. Each of these terms relates to different aspects of an annuity, but only the annuitization period specifically describes the time when payments are made to the annuitant.