Annuitant

An annuitant is an individual who receives payments from an annuity. An annuity is a financial product that provides a series of regular payments, typically for a specified period or until the annuitant's death. The annuitant invests a lump sum or makes periodic payments to the insurance company or financial institution that issues the annuity. In return, the annuitant receives regular income, which can be fixed or variable depending on the type of annuity purchased. Annuitants often use annuities to provide a stream of income during retirement. Their payments are based on the initial investment, interest earned, and the payout period. The structure ensures regular, predictable income, offering financial security. Annuitants must consider mortality credits, investment returns and inflation risks.

Annuitant meaning with examples

• Retiring at 65, Sarah became an annuitant, receiving monthly income from her variable annuity. This income supplemented her Social Security, allowing her to maintain her desired lifestyle throughout retirement. She carefully researched several annuities and ensured the selected products aligned with her financial goals. She prioritized stability and income security above maximizing investment returns.
• After selling his business, John used the proceeds to purchase an immediate annuity. He is now an annuitant receiving payments, which are designed to replace his regular income. He enjoys the convenience of predictable cash flow. He opted for a fixed annuity, providing a guaranteed payment regardless of market fluctuations. John values financial predictability.
• As an annuitant, Maria receives payments from a deferred annuity she purchased years ago. These payments will commence next year, helping ensure her financial stability in the future. This passive income gives her the ability to travel the world. Maria regularly reviews her annuity contract to understand the payment schedule and any associated fees.
• The terms of the settlement agreement specified that the plaintiff would become an annuitant, receiving regular payments over 20 years. This structure provided a long-term, predictable income source to satisfy the court ruling. It was a carefully calculated deal that satisfied all concerned parties. The financial structure considered the plaintiff's needs.
• Upon reaching retirement, the policyholder became an annuitant for their retirement plan. This transformation meant that their accumulated savings were now being disbursed as regular payments. The annuitant was able to have a long and prosperous retirement because of this payment structure. All parties agreed to the terms of the arrangement.