In the context of annuities, who is the annuitant?

The annuitant is defined as the person who receives annuity payments. This designation is crucial because it distinguishes the individual who will benefit from the contract by receiving the funds at specified intervals, typically for the remainder of their life or a set period. The annuitant's life expectancy and age can significantly impact the terms of the annuity, including how long payments will last and how much will be received.

In contrast, the individual who purchases the annuity contract is known as the owner. While they may also be the annuitant, it is not a requirement; the owner can designate someone else to receive the annuity payments.

The insurer providing the annuity plays a role as the party that manages the funds and guarantees the payments but is not referred to as the annuitant. Similarly, the legal representative of the annuity holder would not be considered the annuitant, as they do not directly receive payments unless specific arrangements are made due to circumstances such as death or incapacity of the annuitant. Understanding the role of the annuitant clarifies the purpose of the contract and who benefits from it.