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The Four Main Roles In Annuities Defined

When breaking down your annuities contract, you will see that there are four key roles that should be filled. Below is a brief rundown of the four main players in annuities contracts and their roles.

By: Tom Lustina
Category: Finance
: Insurance
Posted: Aug 13, 2009
Updated: Aug 13, 2009
Views: 185


When breaking down your annuities contract, you will see that there are four key roles that should be filled. Below is a brief rundown of the four main players in annuities contracts and their roles.

• 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

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