The Four Main Roles In Annuities Defined
• The owner – This is the individual who actually takes out the annuity. This person is responsible for paying the premiums, signing the annuities application, agreeing to the terms laid out in the contract, selecting the three individuals who will be filling the other roles, and assuming liability for any taxes and/or penalties the annuity may incur. • The issuer – This is the life insurance company that issues the annuity to the contract owner. Be sure to shop online for the most competitive rates before settling on a provider that will ideally have a proven track record in issuing annuities. • The annuitant – Although there a few exceptions to the rule, the annuitant is usually the same as the owner of the contract and it’s their life that determines the time table for the annuity’s payout. • The beneficiaries – This can be one individual or a group usually consisting of family and loved ones. The owner’s beneficiary and the annuitant’s beneficiary receive the value of the annuity at the time of annuitization should the contract owner be passed on at that point in time. Knowing Who’s Involved With Annuities It is the contract owner’s responsibility and the contract owner’s responsibility alone in determining who will fill the three roles laid out in the contract. To learn more about annuities you can go to InsuranceAgents.com and talk to a life insurance agent today. Staff Contribution: Kyle Fitzsimmons Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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