What is an Annuitant?
An annuitant is the person designated to receive periodic payments from an annuity contract. An annuity is a financial product often used as part of a retirement plan, designed to provide a steady income stream over time. The annuitant’s life expectancy, age, and health are typically factors in determining the payment amount and duration.
In the context of life insurance, particularly products like Indexed Universal Life (IUL) insurance, Whole Life insurance, and Senior Life insurance, the annuitant might be the policyholder. When the annuity is set up, payments are structured to either last for a set period or for the annuitant’s entire lifetime. This offers a sense of financial security during retirement years.
The annuitant’s role is crucial because the annuity payments depend on their life. For example, in a “life annuity,” payments continue as long as the annuitant is alive. Some annuities may offer options like “joint and survivor,” where payments can extend to a secondary individual if the annuitant passes away.
