Who is the purchaser of an annuity?

The purchaser of an annuity is referred to as the annuity owner. This individual is responsible for making the initial investment or premium payments to the insurance company in exchange for the benefits that the annuity will provide in the future. The annuity owner has rights associated with the contract, such as the ability to name beneficiaries, make withdrawal requests, and, depending on the type of annuity, they may also have a say in how the funds are invested.

In contrast, the annuitant is the person who will ultimately receive the income payments from the annuity, which may or may not be the same as the annuity owner. The beneficiary is the individual designated to receive benefits after the death of the annuity owner or annuitant. The insurance agent is the representative who sells the annuity and assists the purchaser but does not hold ownership of the contract. Thus, the correct identification of the annuity purchaser as the owner underscores the contractual relationship and financial responsibility central to annuity agreements.