Who is referred to as the annuitant in an annuity policy?

In an annuity policy, the annuitant is defined as the individual whose life the policy is based on. This person's age and life expectancy are key factors in determining the benefits that will be received under the annuity contract. The annuitant does not necessarily have to be the same person as the owner of the policy or the beneficiary; however, their life is central to the structure of the annuity.

When the annuity is structured to provide regular payments to the annuitant, those payments are calculated based on the annuitant's lifespan and the terms of the contract. This means that the annuitant plays a crucial role in the workings of the annuity because the financial obligations of the insurer depend on the life of the annuitant.