Before you can know who an annuitant is, you must know what an annuity is. An annuity is a contract agreement between a person an a life insurance company over a predetermined amount of years. Throughout these years, the person makes payments to the life insurance company until a certain date in which the life insurance company will pay you back the value of your annuity. An annuity is like a retirement fund that you can set up for funds later in your life and in order to properly complete the annuity process, you must name an annuitant in your paperwork.

Two key roles in any annuity are the contract owner and the annuitant, which are often one in the same. The contract owner signs the annuity and the annuitant is the one who receives the payments once the payout period begins. These are usually the same person, but there have been times where annuities have been set up for others, making the annuitant either a spouse or other family member. The age of your annuitant is important because life insurance providers use the age to determine what the payout amounts will be. Also the gender of the annuitant is important. Statistically, women live longer than men, therefore life insurance companies prepare different budget plans depending on whether the annuitant is a male or female.

Remember that an annuity is a serious financial investment that should not be entered into lightly. Before you choose an annuity contract, consult a life insurance agent or financial advisor to help you through the entire process.

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