Annuities: Who’s Involved

Explaining The Four People Involved In Annuities

Annuities can be a little confusing, even tricky, but knowing who is involved in your annuities can help make things a little clearer. There are four different people typically involved in annuities: the Owner, the Issuer, the Annuitant and the Beneficiaries. What follows is an explanation of the role each of those people play in annuities. To shop for annuities our quick online form can find up to 5 different rate offers for you from local agents.

The Owner

An annuities owner should be at least one actual person, but can also be a trust that represents at least one actual person. Owners have five main responsibilities:

1. Paying the premiums on annuities
2. Signing the annuities applications
3. Agreeing to the terms of annuities contracts
4. Determining who the other three people involved in annuities will be
5. Assumes liability for any taxes and/or fees resulting from annuities

Owners can pass on ownership, but that passing could be taxed.

The Issuer

An annuities issuer is the insurance company that the owner contracts. The issuer is responsible for any annuities guarantees made in the contract. The annuities owner should always make sure to shop around for annuities issuer who is highly rated by credible rating agencies.

The Annuitant

An annuities annuitant is the individual whose life expectancy determines the annuities payments. In most cases this is the annuities owner, but there are some exceptions. An annuities annuitant could be a spouse, family member or other loved one—the annuities owner decides.

The Beneficiaries

The annuities beneficiaries are individuals the annuities owner designates when the contract is signed. The annuities beneficiaries receive assets if the owner passes. The annuities owner designates his or her own beneficiary AND an annuitant’s beneficiary. The owner and annuitant can be each other’s beneficiaries, or they can designate other family members or loved ones as the annuities beneficiaries.

The annuities owner is the one who makes all of these decisions. He or she selects the annuities issuer (after careful research, of course), designates the annuitant and names the annuities beneficiaries. Each of these decisions must be made as carefully as the decision to invest in annuities—it’s your money, you control what you do with it and how it can benefit you later in your life. Talk to a qualified life insurance agent who specializes in annuities before making decisions. To find a local agent and compare up to 5 quotes, use our quick online form here.