Life Insurance Information Dictionary

Accumulation Phase Definition

Tweet

The Dictionary of Insurance Terms and Definitions

An annuity's life is divided into two periods: the accumulation phase and the income phase.

The accumulation phase (a.k.a. deferment period) is the time during which the annuity owner is not yet receiving a pension from the annuity.  During the accumulation phase, the annuity owner pays periodic premiums into the annuity, and the annuity accrues interest.

Immediate annuities have no accumulation phase to speak of because they begin to issue a pension after the first (and only) premium payment.  Accumulation phases pertain, rather, to deferred annuities.

As a rule, the owner of a deferred annuity can perpetuate the annuity's accumulation phase for as long as he/she wishes (so long as he/she can keep meeting the minimum premium requirements).  When the owner chooses, he/she can end the accumulation phase and begin receiving the annuity's pension.

An exception to this rule is a CD-type annuity, for which the accumulation period is fixed.

A few of the carriers we quote

For assistance call 1-800-823-4852 7am–6pm M–Th, 8am–5pm Friday (Pacific time).
Copyright © 2002-2012 Pinney Wholesale Insurance Services - All rights reserved. 2266 Lava Ridge Court, Roseville CA 95661.

R. Jan Pinney CLU, ChFC, is a licensed life insurance agent in all states and the District of Columbia. The following agent license numbers are provided for R. Jan Pinney as required by state law: CA agent #0440057, LA agent #291116, MA agent #1674866, MN agent #20270113, UT agent #58330, agent R. Jan Pinney, DBA Pinney Wholesale Insurance Services. Commercial use by others is prohibited by law. This site provides term quotes. Each rate shown is a quote based on information provided by the carrier. No portion of WholesaleInsurance.net may be copied, published, faxed, mailed or distributed in any manner for any purpose without prior written authorization of the owner.