Who is considered an annuitant?

An annuitant is the individual who receives payments from the annuity. This person is central to the structure of the annuity contract, as the payments are based on their lifespan and other factors. The payments typically begin after the accumulation phase if it's a deferred annuity, or they may start immediately if it's an immediate annuity.

The significance of the annuitant lies in their role as the recipient of the annuity benefits. The terms and structure of the annuity are often tailored to fit the financial and retirement needs of this individual, making them the focal point in annuity transactions. The annuity contract details how much and how often they will receive payments, which can be a crucial part of their financial planning for retirement or other long-term goals.

In contrast, others listed—such as the seller of the annuity, the financial institution managing it, or the beneficiary—play different roles that do not directly involve receiving payment from the annuity. The seller or issuing company is responsible for creating and maintaining the contract, while the beneficiary is designated to receive benefits only after the annuitant has passed away.