What is the term used for the time when the accumulated sum during the accumulation period is converted into income payments?

The term that describes the time during which the accumulated sum from the accumulation period is converted into income payments is the annuity period. This phase follows the accumulation phase, where funds are collected or invested, and it signifies the transition to receiving regular income from the annuity. During the annuity period, the policyholder starts to realize the benefits of their investment through periodic payments, often defined in terms of a fixed amount over a set duration or until a certain condition is met, such as the annuitant's death.

Understanding the distinction between phases is crucial in life insurance and annuity contracts. The accumulation phase is dedicated to building up the value of the policy, while the annuity period represents the payout stage, emphasizing the importance of funds being converted into income for the policyholder.