What happens to the benefits of an annuity if the annuitant dies during the accumulation period?

When the annuitant dies during the accumulation period of an annuity, the benefits typically go to the designated beneficiary. This ensures that the value accumulated in the annuity is not lost and can instead provide financial support to the individual or individuals selected by the annuitant. This is an essential feature of many annuity contracts, as it allows the policyholder to provide for their beneficiaries even if they do not reach the payout phase themselves.

In the context of insurance and financial planning, this aspect of annuities adds a layer of security and peace of mind, knowing that the investment will have a positive impact on loved ones in the case of an untimely death.