Sentences with phrase «owners of an annuity die»

Where as owners of an annuity die broke because all the principal is lost, the owner of a Reverse Mortgage need only pay back the borrowings and accrued interest.

Not exact matches

A person or organization designated to receive the proceeds of an annuity contract after the owner dies.

If the annuity owner died, you may have several options to receive your inherited annuity proceeds depending on the terms of the annuity contract, your relationship to the person who died, and when the owner died.

Because in addition to interest and return of a portion of your principal, each annuity payment effectively contains an extra little amount known as a «mortality credit» — essentially, money transferred from annuity owners who die early to those who live long lives.

The reason is that when insurance companies create an annuity, they pool the money of thousands of annuity owners, some of whom will die sooner than others.

If the annuity owner died, you may have several options to receive your inherited annuity proceeds depending on the terms of the annuity contract, your relationship to the person who died, and when the owner died.

Here are the rules when an owner of a deferred annuity dies before annuity payments have begun.

In almost all cases, when an annuity owner (s) dies, the balance of the account simply passes to a named beneficiary.

There is one type of annuity account, commonly referred to as an immediate annuity where, in one instance, the insurance company can keep the undistributed funds when the owner dies.

One of the primary considerations of a longevity annuity is what happens to the premium and / or income should the annuity owner die before the income begins or is fully received.

This guarantees that, should the investor die during the accumulation phase of the variable annuity, the account owner's beneficiary will receive at least the amount of the investor's contributions minus withdrawals or the current market value of the account.

The annuity contract pays a death benefit to the beneficiaries designated by the owner of the annuity when the annuitant dies.

If an annuity owner dies after the contract has been annuitized, and payments are still owed to the beneficiary due to the original owner's choice of payout options, all remaining payments will be directed to the beneficiary until the expiration of the guaranteed period.

The first type is a guaranteed minimum death benefit (GMDB), which can be received only if the owner of the annuity contract, or the covered annuitant, dies.