Question 6002 of 303 · California Life-Only Agent Exam

The accumulation period of an annuity is

Exactly one answer is correct.

Athe time during which the contract builds value before payments begin
Bthe time during which payments are made to the annuitant
Cthe period after which the annuitant can surrender without charge
Dthe time between the death of the annuitant and payment to the beneficiary

Show solution

Correct answer to question 6002

A: the time during which the contract builds value before payments begin

Explanation

The accumulation phase is the savings stage, followed by the distribution phase (annuitization or payout).