The period in which the premiums are paid toward the purchase of an annuity is called the accumulation period. The period when the annuity payments are made is called the distributive period.
The time period during which regular contributions are made to an investment or premium payments are made on an insurance product, like an annuity, intended to be utilised for retirement, is known as the accumulation period (or accumulation phase).
The few days between the date on which the Board of Directors declares a stock dividend (the "declaration date") and the "date of record," or the day on which a shareholder must own shares in order to be eligible for a dividend, are known as the "distribution period."
The period in which the premiums are paid toward the purchase of an annuity is called the accumulation period. The period when the annuity payments are made is called the distributive period.
The principal is the premium paid by the individual buying the annuity (called the annuitant).
Interest is earned between the time annuities are paid and distributed, accruing tax free but paid for with after-tax dollars.
If any portion of the principal and interest has not been returned, it is referred to as the survivorship benefit.
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