During which phase does the insurance company pay the beneficiary?

The pay out phase is the stage in an insurance policy, particularly in annuities or life insurance, where the insurance company begins to make payments to the beneficiary or policyholder. This phase typically follows the accumulation phase, where funds are gathered and invested. During the pay out phase, the insurance benefits, whether from a life insurance policy upon the policyholder's death or periodic payments from an annuity, are distributed to the designated beneficiaries or account holders.

This phase is crucial as it signifies the fulfillment of the insurance contract, allowing beneficiaries to receive financial support during a time of need. Understanding the pay out phase helps individuals recognize when they can expect to receive benefits and how those payouts are structured, whether as a lump sum or through scheduled payments.