FIXED INDEX ANNUITIES
Who’s Who in an FIA?
Owner. Annuitant. Beneficiary. Insurance company.
The names can feel unfamiliar at first. Knowing who each one refers to and what role they play can make your annuity much easier to understand.
Understanding the Roles Inside Your FIA
There are a few different roles inside a fixed index annuity. Knowing who each one refers to can make the contract much easier to understand.
Most FIAs involve four key roles.
The Insurance Company
This is the company that provides the annuity and backs the guarantees included in the contract, subject to its terms and the company’s claims-paying ability.
The Contract Owner
Think of the owner as the person in control of the contract. The owner can name beneficiaries, request withdrawals, and make other changes the contract allows.
The Annuitant
The annuitant is the person whose life the contract uses when determining certain benefits or payments. In many cases, the owner and annuitant are the same person. In other situations, they may be different.
The Beneficiary
This is who you name to receive any applicable death benefit from the annuity. A beneficiary could be your spouse, children or grandchildren, another family member, a trust, a charity, or an organization that is important to you, such as your alma mater.
Why Does It Matter Who Plays Each Role?
Who you name in each role can affect who makes decisions about the annuity and who may receive benefits later.
At MTD Financial, we’ll walk through those choices with you and help make sure everything is set up the way you intend.
An Annuity Makes More Sense When the Details Do.
An annuity contract can come with unfamiliar names, roles, and decisions. You shouldn’t have to sort through them on your own.
Whether you already have an annuity or you’re considering one, we’ll help you understand what you’re looking at and how the pieces fit together.