During what phase is the accumulated money in an annuity converted into a stream of income?

The conversion of accumulated money in an annuity into a stream of income takes place during the annuitization period. This is the stage where the insurer takes the funds that have been built up during the accumulation phase and transforms them into regular income payments for the annuitant. This process can involve the selection of various payout options that dictate how the payments are structured, whether they are for a fixed number of years, for the lifetime of the annuitant, or other arrangements.

In contrast, the accumulation phase is characterized by the growth of funds, where the annuitant makes contributions or invests the initial premium. The distribution phase, while it sounds relevant, typically refers to the broader process of accessing funds, and does not specifically encompass the conversion process to income payment. The term "beginning phase" is not commonly recognized in the context of annuities and lacks specificity. Thus, the annuitization period is the most precise and relevant phase for this conversion process, marking the transition from accumulation to receiving income.