Question

In: Finance

6. Dan purchased a fixed annuity from Excellent Life Insurance Company, naming his wife, Kathy, as...

6. Dan purchased a fixed annuity from Excellent Life Insurance Company, naming his wife, Kathy, as annuitant and his daughter, Jessica, as beneficiary. Who controls the contract?

  • a. Dan
  • b. Kathy
  • c. Jessica
  • d. Dan and Kathy, jointly

Solutions

Expert Solution

Dan controls the contract because Most annuities allow the contract owner to change the annuitant at any time. ... The annuitant and the owner can be one and the same. The beneficiary is like the beneficiary of a life insurance policy. The death benefits of the annuity contract are paid to the beneficiary when another party to the annuity contract dies

jeff jeffy answered 1 year ago
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