What is the role of a beneficiary in an annuity contract?

In an annuity contract, the role of a beneficiary is primarily to receive any remaining funds or death benefits upon the death of the annuitant. This ensures that the assets tied to the annuity can be passed on to a designated person, often providing financial support or stability to the beneficiary after the annuitant's death.

Choosing a beneficiary is a critical part of the annuity planning process, as it provides clarity on how funds will be managed and distributed after the annuitant is no longer alive. A well-defined designation of beneficiaries can also help avoid complications or delays in accessing benefits and can ensure that the annuity benefits serve their intended purpose as part of the annuitant’s estate planning.

Other options provided do not accurately reflect the beneficiary's role in an annuity contract. For instance, the beneficiary does not manage or make investment decisions, pay premiums, or determine the maturity date of the annuity, which are responsibilities typically held by the annuitant or the owner of the annuity contract.