5631 Evaluating the Annuity

Payment Terms of the Annuity - The payment terms of the annuity are driven by the contract, with the following possibilities: The lifetime of the individual; The lifetime of the individual with a minimum return of the principal to a beneficiary if the specified portion of the principal is not returned before the individual's death. A period certain number of months or years, with a guaranteed payment amount if the individual dies before the specified period has expired.

Parties to the Annuity : Carrier - The writer of the annuity. This must be an organization authorized to write and issue an annuity contract, such as a life insurance company or a charitable organization. Annuitant - The person whose life is used to calculate the terms and payments from the annuity; usually the person who is entitled to payments from the settlement option. Owner - The annuity owner is the person who may exercise the rights provided in the annuity contract during the life of the annuitant. This person can name himself/herself or another person as the annuitant, choose the settlement option and name the beneficiary. Remainder Beneficiary - The individual entitled to receive any payments following the death of the annuitant.