What must annuity beneficiaries do after the owner’s death?

The beneficiaries of an annuity must notify the insurance company of the annuitant’s death as part of the claims process. This notification is essential because it triggers the company's procedures for releasing the benefits owed to the beneficiaries. After the death of the annuitant, the insurance company needs confirmation in order to process any payouts or benefits that might be due under the terms of the annuity contract. This step ensures that the rightful beneficiaries can access the proceeds in accordance with the annuity's provisions and any applicable regulations.

The other options do not accurately reflect the responsibilities of the beneficiaries following the annuitant's death. Premium payments are usually the responsibility of the annuity owner while they are alive, and the beneficiaries typically do not face a waiting period to claim benefits once they have notified the company. Additionally, withdrawing funds to avoid penalties is not a standard requirement or practice for beneficiaries in the event of an owner’s death; instead, they focus on claiming the benefits as designated in the policy.