Individual annuity buyers can name themselves contract owner and annuitant, while listing a loved one or entity such as a living trust, charity or corporation, as beneficiary. This gives the owner complete control over the annuity investment during his or her lifetime. The contract owner may change the beneficiary(ies) at any time without the beneficiary(ies) consent. Indeed, the beneficiary will only benefit from the annuity when the annuitant dies.
Named beneficiaries can be one or more:
- Natural persons (children of the annuitant, friends, relatives, spouse, neighbors; or
- Non-natural entitles (trusts, estates, corporations, partnerships).
Selected when the contract is purchased, beneficiaries can be changed at the owner's option. A contingent beneficiary is the party designated to receive annuity proceeds if the primary beneficiary dies before the owner.
