In a deferred annuity, when are purchase payments made?

In a deferred annuity, purchase payments are made during the accumulation period. This period is essentially the time before the annuity starts making payouts to the annuitant. During this accumulation phase, the owner contributes funds to the annuity, which are then invested to grow over time until the distribution period begins.

During this time, the annuity can accumulate interest and grow in value, benefiting from compounding. The payments made help fund the eventual income that will be provided during the distribution period, when the annuity starts to pay out benefits.

The other scenarios, such as making payments during the distribution period or upon annuitization, do not apply here. In those instances, the annuity is already in a phase of providing income, not accumulating. Similarly, payments made after the owner's death are typically not direct purchases but could involve other financial arrangements such as the death benefit for beneficiaries. Thus, the correct context for making purchase payments in a deferred annuity is clearly defined as being in the accumulation period.