Who is the annuity owner?

The annuity owner is defined as the individual or entity that purchases the annuity contract and holds the rights to the contract. This person is responsible for making decisions related to the annuity, including how funds are invested and when benefits are withdrawn. The owner may also designate beneficiaries who will receive the annuity’s benefits upon the owner's death.

This distinction is crucial as the owner has control over the contract's features, such as choosing investment options and surrendering the contract if needed. While the person who receives the benefits, often the annuitant, may be different from the owner, the owner retains the primary authority over the annuity.

The issuer of the annuity contract, while essential, is the company that sells the annuity and guarantees payments, but it does not have ownership rights. A financial advisor might provide guidance on annuities and help manage the investment but does not possess ownership of the annuity contract unless they are also the purchaser.