Who receives the remaining amounts in an annuity upon the death of the annuitant before payment commencement?

The beneficiary receives the remaining amounts in an annuity upon the death of the annuitant before payment commencement. When an annuitant passes away before the annuity payments begin, any funds accumulated in the annuity typically go to the designated beneficiary. This is a crucial aspect of how annuities function, as they are designed to provide financial protection and ensure that funds can be transferred to a loved one or other designated party in such events.

Specifying a beneficiary allows for direct transfer of the remaining value in the annuity, which can help provide financial support to loved ones. This aspect is essential for planning purposes, as individuals often wish to ensure their assets are allocated according to their wishes after their passing. The selection of a beneficiary is typically outlined in the annuity contract, and the rights of beneficiaries are protected under the terms of the policy.

While the owner of the annuity does have rights over the account, including the ability to change beneficiaries or surrender the annuity, it is the beneficiary who ultimately receives the remaining amounts upon the annuitant's death before payments commence. The annuitant, on the other hand, is the person whose life expectancy is used to determine the terms of the annuity but does not receive funds after passing