What is the period of time during which the owner makes payments into an annuity called?

The correct answer is the Accumulation Period, which refers to the time frame in which the annuity owner makes contributions to the annuity. During this period, the funds invested in the annuity grow on a tax-deferred basis, meaning the earnings are not taxed until they are withdrawn. This growth can result from various investment options available within the annuity, depending on whether it is a fixed, variable, or indexed annuity.

The Accumulation Period is crucial for building a financial base for retirement or other long-term needs. After this phase ends, the contract typically transitions into the payout phase, where the accumulated funds are distributed to the annuitant, hence distinguishing the two distinct phases of an annuity.

While other terms may describe different aspects of the annuity process, they do not specifically refer to the time when payments are made into the annuity. Understanding this concept is essential for effectively planning retirement and managing income throughout one's later years.