Contingent Annuitant

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Contingent Annuitant Annuities are financial products that pay a fixed income stream to an individual and are commonly used by retirees. A contingent annuitant is someone designated by an annuitant to receive the annuitant’s payments when they pass away. A contingent annuitant is included in an annuity contract when you want to provide ongoing financial security to another individual. Annuities with a contingent annuitant do not stop payments until both the annuitant and the contingent annuitant have passed. Essentially, having a contingent annuitant means that the annuity will continue to pay until two people pass away as opposed to just one. If the policy does not allow for a contingent annuitant, the annuity stops making payments when the annuitant dies. For annuities with a contingent annuitant, the payments may be smaller as they are meant to last longer by covering both the annuitant and the contingent annuitant until death. The difference between a contingent annuitant and a beneficiary is that the beneficiary is the person who is entitled to receive the remaining cash value of the contract upon the death of the annuitant or annuitants, in the case of a joint-and-survivor annuity. Individuals have a variety of annuities to choose from depending on their circumstances, such as period certain annuities and joint survivor annuities. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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