- The stretch of time where an individual builds up the value of their investment. As it relates to annuities, the accumulation period is the phase where the annuitant makes contributions to the annuity. Also known as the "accumulation phase," "deferral phase," "deferral period," "savings period," or "savings phase."
savings period, deferral phase, savings phase, accumulation phase, deferral period
Related Terms and Acronyms
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Instalment — Definition,
- The regular periodic payment that a borrower agrees to make the lender.
- Investment in the Contract — Definition,
- The principal that has been contributed to an annuity.
- Life Expectancy Method — Definition,
- A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
- Payout Phase — Definition,
- The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
- Split-Funded Annuity — Definition,
- Two annuities purchased together, one with a deferred payout and the other with an immediate payout.