There are so many things to think about when purchasing an annuity.  But there are some things you can do right away when you are filling out the paperwork to make sure it’s all filled out correct.  Using a capable company like www.annuityrateshopper.com will help ensure that your contracts are set up properly.

1. The death benefit is paid at the annuitant’s death - not the owner’s death - to the annuitant’s beneficiary.  If no annuitant’s beneficiary is named the death benefit will be paid to the estate
2. The Owner controls the annuity contract, names the beneficiaries and can change them at any time.
3. The owner of the annuity contract is responsible for the tax liabilities.
4. If a contingent annuitant is named, then no death claim will be paid upon the death of the primary annuitant.  The contingent annuitant will replace the primary annuitant as the annuities new primary annuitant.
5. If the owner and the annuitant are different on the annuity contract a beneficiary should be named for each.
6. On these annuity contracts the death of the owner, not the death of the annuitant, triggers the five year deferral rule.
7. The death of the owner, no the death of the annuitant, triggers the annuity spousal continuation.
8. The death of both the owner and annuitant must occur to receive the stepped up death benefit (Only applies to variable annuity contracts) and affect spousal continuation.
9. When one of the joint owners on a contract dies, the IRS considers them both to have died and the deceased owner’s beneficiary contols the contract.
10. The spouse must be named the sole annuitant’s beneficiary as well as the sole owner’s beneficiary in order to continue the contract.