How Fixed Annuities work

Insurance Company: This is the company that issues the annuity. The insurance company is responsible for backing the annuity’s guarantees.

Contract Owner/Annuitant: These usually are the same person, but they can be different. The owner makes decisions about the annuity, such as who the beneficiaries are. The annuitant is the person whose life expectancy is used to calculate annuity payment.

Beneficiary: The beneficiary is the person who receives the annuity’s death benefit. Naming one or more beneficiaries is important. This is because without a beneficiary, the money in your annuity could be subject to probate.

A death benefit can be paid to your beneficiary without probate.