| To use an analogy, in a life insurance policy, the | | | | Since the owner of the contract can change the |
| beneficiary has no "status" until the death of the | | | | beneficiary at any time, they do not need to |
| named insured. In an annuity, the beneficiary has | | | | notify a listed beneficiary that they have been so |
| no "status" until the death of the annuitant. | | | | designated, or indeed, even tell them if they are |
| Similarly, the beneficiary of an annuity has no | | | | removed as beneficiary. Regulations are rather |
| control of the policy and has no say in the | | | | detailed as to who can purchase an annuity and |
| management of the policy. The annuitant benefits | | | | for whose benefit, keeping in mind the contract |
| from an annuity only when the annuitant dies. | | | | law that a contract entered into by a minor can |
| The beneficiary can be either an individual, or a | | | | be voided by such minor. |
| trust, corporation or partnership. There does not | | | | California regulations state that (a) a minor under |
| have to be any relationship between the | | | | age 18 may enter into a valid contract for life or |
| beneficiary and the annuitant - indeed, they could | | | | disability insurance, or annuities, (b) those under |
| conceivably be (but highly unlikely) total strangers. | | | | age 16 can purchase life or disability insurance or |
| The application form used for an annuity allows | | | | annuities with the written consent of their parent |
| the owner to state multiple beneficiaries, and to | | | | or guardian. In respect to benefits, a minor under |
| designate the percentage of each beneficiary if so | | | | the age of 18 may give valid instructions as to |
| desired. | | | | any money that has accrued or payable under |
| Frequently, one spouse would be the owner of | | | | the terms of the contract, but only with the |
| the contract, and the other spouse would be the | | | | written consent of a parent or guardian. The |
| beneficiary. With some companies, co-ownership is | | | | regulations also state that any contract that is |
| allowed, thereby allowing both spouses to be | | | | made by a minor under age 18 that can result in |
| owners. They can be quite valuable in case the | | | | the personal liability for assessment, may only be |
| annuitant dies as the annuity proceeds would not | | | | issued with the written assumption of such liability |
| go to a beneficiary as long as one of the spouses | | | | by a parent or guardian. 12B |
| was still alive. | | | | In actual practice, annuities are generally issued |
| Generally, a single person (or widow or widower) | | | | with maximum ages of 85 and annuitization at |
| will designate themselves as the owner of the | | | | age 90 or 95, with some offering maximum |
| contract and also the annuitant, naming another | | | | annuitization age of 100. Age 85 is also often used |
| party as the beneficiary (such as a church, | | | | for both purposes as that is the law in |
| charity, etc.). By doing this, the person has | | | | Pennsylvania. For non-qualified products the |
| complete control over the investment during their | | | | youngest issue age is usually -0-, but the minimum |
| lifetime, and upon their death, the annuity | | | | age usually is only mentioned for Equity Index |
| proceeds will automatically pass to the intended | | | | Annuities. |
| heir. | | | | |