What term is used to describe the transformation of accumulated money into a series of income payments?

The term that describes the transformation of accumulated money into a series of income payments is known as the "annuitization period." This process occurs when an individual takes the accumulated funds from a retirement vehicle, such as an annuity, pension, or investment, and converts these funds into regular payments that can provide income over a specified period, typically during retirement.

During the annuitization period, the insurer typically guarantees a steady stream of income for the annuitant's lifetime or for a set number of years, depending on the type of annuity chosen. This transformation is crucial for individuals who want to ensure they have a predictable and reliable source of income as they transition from working to retirement.

Other terms presented in the options serve different purposes within insurance and financial contexts. For instance, flexible premium relates to insurance policies and refers to the ability to vary the premium payments made over time. The reduced paid-up option is a non-forfeiture benefit that allows policyholders to stop premium payments while retaining some level of coverage. Collateral assignment involves using a life insurance policy as collateral for a loan but does not pertain to the conversion of accumulated funds into income payments.