13 Flashcards
All rights such as Naming beneficiary and surrendering annuity
Owner of annuity
Recs benefits or payments
Life expectancy taken into consideration
Annuitant
Owner may be corporation trust or other legal entity
Annuity
Annuitant must be
A natural person
Annuitant and contract owner do not
Need to be same person but often are
Bc annuities are based in life expectancy of annuitant annuitant must be this regardless of who owns
Natural person
Recs annuity assets
(Amount paid in or cash value whichever is greater )
If annuitant dies
Beneficiary
Owner pays to
Annuity
Annuity pays to
Owner
`accumulation period aka
Pay in period
Period of time over which owner makes payments into an annuity
Accumulation period
Period of time in which payments earn interest on a tax deferred basis
Accumulation period
Annuity period aka
Annuitization period
Liquidation period
Pay out period
Time when sum being accumulated during accumulation period converted into stream of income payments to annuitant
Annuity period
May last for lifetime of annuitant or for
Specified period which could be infer or shorter
The time when the annuity benefit payouts begin aka trigger for benefits
Annuitization date
Owners of annuities can be individuals or entities like corporations and trusts but
Annuitant must be natural person whose life expectancy is taken into consideration for annuity
Not true regarding annuitant
Cannot be same person as annuity owner
Don’t have to be but annuitant and annuity owner are often same person and
Annuitant is the person who recs benefits or payments from annuity for whom annuity is written
Not true of accumulation period
Would not occur in a deferred annuity bc this is the period of time when payments earn interest and grow tax deferred
