Question

The period during which premiums are paid for the purchase of an annuity is called the _____.

A) Installment period
B) Accumulation period
C) Survivor period
D) Distribution period
E) Contract period

Answer 1

The period for paying premiums into an annuity is known as the accumulation period. It is the phase where contributions are made to build up the funds that will later provide periodic payments.

Step-by-step explanation:

The period during which premiums are paid for the purchase of an annuity is called the accumulation period. This is when an individual makes payments (either a lump sum or a series of payments) into the annuity, which will later be used to generate periodic payments during retirement or another specified time. The accumulation period is followed by the distribution period, which is when the annuitant starts receiving payments.