The period in which the premiums are paid toward the purchase of an annuity is called theaccumulation period. The period when the annuity payments are made is called the period. The principal is the premium paid by the individual buying the annuity $($called the $).$ Interest is earned between the time annuities are $,$ accruing tax free but paid for with after$-$tax dollars. If any portion of the principal and interest has not been returned, it is referred to as the benefit.