What is the term for the time during which funds are paid into an annuity?

The term for the time during which funds are paid into an annuity is referred to as the accumulation period. During this phase, the annuity owner makes contributions or premium payments into the annuity contract. These funds can grow over time based on the performance of the underlying investments, which may include fixed interest rates or other investment options, depending on the type of annuity chosen.

The accumulation period is significant because it allows the investment to grow tax-deferred until withdrawal, meaning that taxes on earnings are postponed until the annuity owner begins to take distributions. This characteristic can be particularly appealing for those looking to save for retirement or other long-term financial goals.

In contrast, the other terms mentioned do not accurately describe this phase. The annuity period usually refers to the time when the annuity starts paying out income to the policyholder, the savings period is not a standardized term in this context, and the endowment period typically relates to a life insurance product that pays out a benefit after a certain period or upon death. Thus, the accumulation period is the most precise term for the time during which funds are paid into an annuity.