Which of the following correctly describes the annuitization period?

The annuitization period refers to the phase during which the benefits or payouts from an annuity are distributed to the annuitant. This occurs after the accumulation phase, where the funds are collected and grow, and signifies the beginning of regular payments to the individual based on the terms of the annuity contract. During this time, typically, the annuitant receives periodic payments that can last for a predetermined number of years or for their lifetime, depending on the chosen payout option.

The definition emphasizes the focus on the payout aspect of the contract, highlighting that this period is directly related to receiving the benefits rather than accumulating funds, which aligns with the core purpose of an annuity as a retirement income vehicle.