What Happens When Annuitant Dies?

In an annuity contract, the annuitant is very important. What happens when the annuitant dies is very important because the annuitant is the person whose life the annuity payments are calculated and based on.

What happens when the annuitant dies depends on the type of the annuity contract and the terms of the agreement of that particular annuity contract. The annuity concept is based on the unpredictability of human life.

What might happen when the annuitant dies?

Remember below are just some possible examples of scenarios of what might happen when the annuitant dies. What really happens depends on the terms and agreement of the individual annuity contract that you signed.

Annuity payments will stop

Depending on the annuity contract terms and conditions, the annuity payment distribution may be only for the life of the annuitant, in which case, when the annuitant dies, the annuity payments will stop.

Annuity payments will continue for a certain period of time

The annuity contract may be based on not only on the life of the annuitant but it may include some minimum guaranteed total annuity payout. In this case, if the annuitant dies, the annuity payments will continue until that guaranteed period is passed.

Annuity payments will continue over the life of another person

The annuity contract may cover the life of the annuitant and also another person or persons. So, if the annuitant dies, the annuity benefits will continue until the other person (persons) in the annuity contract also dies.

How do I find out what happens when the annuitant dies?

The only way you can find out for sure what happens to your annuity contract and annuity payments when the annuitant dies is to call your insurance company that issued the annuity to find out about your annuity contract. Everything should have been explained in the beginning for you before you purchase the annuity. However, most people are confused by the complexity of the annuity concept and do not read everything they are given. The annuity rep (life insurance agent) may not be forthcoming with all the details or they may not know all the details themselves.