Annuitant vs. Beneficiary: What’s The Difference?

Shawn Plummer

CEO, The Annuity Expert

Annuitant vs. beneficiary, what’s the difference? This is a question many people are asking themselves and a topic discussed in the annuity community for years. This guide will discuss some critical differences between annuitants and beneficiaries to help determine which one you should be!

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The Annuity Contract Setup

An annuity is a contract between a consumer and an insurance company. The annuity contract has three designated representatives of the contract:

Is The Annuitant, The Beneficiary

What is an Annuitant?

An annuity is an insurance policy for retirement.

An annuitant is a person whose life expectancy is used to calculate annuity payments. The annuitant receives benefits or annuity payments from an annuity contract with an insurance company.

Most of the time, the annuitant is also the contract owner, but they can be different. For example, the contract owner, such as the beneficiaries, decides about the annuity. If the annuitant is different from the contract owner, the annuitant can not decide about the annuity contract.

Annuitant Vs Beneficiary

What is a Beneficiary?

The beneficiary is the person who received the annuity’s death benefit. Naming one or more beneficiaries other than the estate is vital because, without a beneficiary, the money in the annuity could be subject to probate.

Annuitant And Beneficiary

Joint Annuitant Vs Beneficiary

A joint annuitant, typically a spouse, continues to receive annuity payments after the primary annuitant’s death. A beneficiary inherits assets or benefits but doesn’t necessarily receive annuity payments. Joint annuitants often receive lifetime payments, while beneficiaries receive remaining assets or benefits according to the contract or will.

Joint Annuitant Vs Beneficiary

Consider life insurance

Is it a top priority for you to leave money to your beneficiaries? If this is the case, life insurance may be a better solution. You don’t have to take a medical examination in some situations. Compare life insurance quotes online to see if it’s worth it. Coverage starts at $9.37 per month.

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Whats A Beneficiary

Next Steps

Annuitants and beneficiaries are essential players in the annuity world but have different roles. If you’re trying to decide which one you should be or want more information on this topic, contact us for a quote. We can help you understand the differences between these two roles and how they might impact your financial future. Thanks for reading!

Annuitant Vs. Beneficiary

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Frequently Asked Questions

Does an annuity have a beneficiary?

Yes, an annuity can have a beneficiary who will receive the annuity payments after the annuitant’s death. The process can vary by type of annuity, and the annuitant can set the beneficiary when they purchase the annuity.

What is an annuitant in life insurance?

An annuitant is an individual who receives payments from an insurance company or other financial institution. Annuitants typically receive these payments in exchange for a lump sum premium, although other payment options may be available. In addition, these payments may be for a specific period or life, depending on the type of annuity purchased.

*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost to you if you purchase a policy. It helps us keep the lights on!

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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