Annuitant is defined as the person who buys an annuity and may or may not be the policyowner and who receives the distributions from the annuity contract. Which term is this?

Annuitant is defined as the person who buys an annuity and may or may not be the policyowner and who receives the distributions from the annuity contract. Which term is this?

• A. Policyowner
• B. Beneficiary
• C. Annuitant
• D. Assignee

Answer: (C)

The main idea here is understanding who actually receives the payments in an annuity and whose life the payments are based on. The annuitant is the person whose life expectancy drives the payout and who receives the annuity distributions. This person may be the policyowner, but that isn’t required—the contract owner controls the policy and can designate the annuitant, who then receives the payments. The other roles are different: the policyowner is the person who owns and controls the contract; the beneficiary is who would receive benefits if the contract ends due to death; the assignee is someone to whom rights under the contract have been transferred. So the term described is the annuitant, since that person receives the distributions and may or may not be the owner.

The main idea here is understanding who actually receives the payments in an annuity and whose life the payments are based on. The annuitant is the person whose life expectancy drives the payout and who receives the annuity distributions. This person may be the policyowner, but that isn’t required—the contract owner controls the policy and can designate the annuitant, who then receives the payments. The other roles are different: the policyowner is the person who owns and controls the contract; the beneficiary is who would receive benefits if the contract ends due to death; the assignee is someone to whom rights under the contract have been transferred. So the term described is the annuitant, since that person receives the distributions and may or may not be the owner.