Key Takeaway
An annuitant is someone who receives regular payments from an annuity contract. An annuity is a financial product that pays someone a lump sum in exchange for regular payments. The annuitant’s age and health may affect the amount of the payments.
In the life insurance industry, an annuitant refers to an individual who receives payments from an annuity contract. An annuity is a financial product that provides regular payments to an annuitant in exchange for a lump-sum payment or periodic premiums paid to an insurer.
The annuitant is the person who receives the annuity payments, which may be made for a specified period or for the annuitant’s lifetime. The annuity payments may be fixed or variable, depending on the terms of the annuity contract.
An annuity may be purchased by an individual or by a group, such as an employer-sponsored retirement plan. The annuity payments may be used to supplement retirement income, provide for long-term care expenses, or serve as a source of income for beneficiaries after the annuitant’s death.
The annuitant may also be referred to as the recipient or beneficiary of the annuity payments. The annuitant’s age, health status, and life expectancy may impact the amount of the annuity payments and the overall cost of the annuity contract.
Overall, the annuitant plays a critical role in the annuity contract and receives regular payments in exchange for the initial investment or periodic premiums. The annuitant should carefully review the terms of the annuity contract to understand the payment schedule, payment amount, and any fees or charges associated with the contract.
