Who receives the annuity assets, or the money paid into the annuity or cash value (whichever is greater) if the owner dies before claiming the money?

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Multiple Choice

Who receives the annuity assets, or the money paid into the annuity or cash value (whichever is greater) if the owner dies before claiming the money?

Death benefits from an annuity go to the beneficiary named in the contract. If the owner dies before the money is claimed, the assets—whether the cash value or the amount paid in, whichever is greater—are paid to that beneficiary. The annuitant is the person whose life affects the payout schedule, not the recipient of death benefits. If no beneficiary is named, the proceeds typically go to the owner's estate. Suitability is not a recipient; it’s about evaluating whether a contract fits the investor’s needs.

Death benefits from an annuity go to the beneficiary named in the contract. If the owner dies before the money is claimed, the assets—whether the cash value or the amount paid in, whichever is greater—are paid to that beneficiary. The annuitant is the person whose life affects the payout schedule, not the recipient of death benefits. If no beneficiary is named, the proceeds typically go to the owner's estate. Suitability is not a recipient; it’s about evaluating whether a contract fits the investor’s needs.

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