If the annuity is structured as a joint life annuity, it guarantees payments for both the lifetime of the annuitant and that person’s spouse. Upon one spouse’s death, the survivor will continue to receive payments for life.

How does an annuity death benefit work?

Annuity Death Benefit Provision Explained You pay the insurer a set amount of money to purchase the contract. In turn, the insurer agrees to pay you according to a set schedule. These payments can begin right away if you have an immediate annuity or be deferred until a later date.

What happens to an annuity when the beneficiary dies?

Life Annuity. Upon death, all payments stop. However, another option is a joint-life annuity that guarantees payment for both the lifetime of the annuitant and that of your beneficiary. Upon the annuitant’s death, their spouse or other beneficiary continues to receive payments until their death.

What happens to the money in a single life annuity?

Single life or life only annuity: You receive lifetime payments from the annuity. However, it doesn’t pay any survivor benefits. Life annuity with period certain: Annuity payments extend over a minimum time period, such as 10, 15 or 20 years. If you pass away during that time, any remaining payments go to your named beneficiary.

Can a beneficiary of an inherited annuity change their name?

Inherited annuities are taxable as income. The beneficiary of a tax-deferred annuity may choose from several payout options, which will determine how the income benefit will be taxed. If the beneficiary is the spouse of the annuitant, the spouse can change the contract into his or her own name.

What are the options for a joint life annuity?

However, another option is a joint life annuity that guarantees payment for both the lifetime of the annuitant and that of your beneficiary. Upon the annuitant’s death, their spouse or other beneficiary continues to receive payments until their death.