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Who are the parties in an annuity contract?
An annuity contract always involves at least three parties: the owner, the annuitant and an insurance company. It may also have a beneficiary. How it works: An insurance company issues you an annuity, promising to invest your premiums wisely and pay you or your beneficiary according to the options you select. You purchase the annuity and designate the beneficiary. The annuitant can be the person who receives the payment when the annuity is annuitized (when payments begin) or the person whose age is used to calculate payments to the annuitant. In many cases, you are both owner and annuitant. Your beneficiary is generally the person who receives the death benefit of the annuity if you die before the annuity starting date or who becomes the owner upon your death on or after the annuity starting date.Return to Questions
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