An annuitant is an individual who receives payments from an annuity. An annuity is a financial product typically offered by insurance companies, and it is designed to provide a stream of periodic payments to the annuitant, usually for the rest of their life or for a specified period.

Here are some key points related to annuitants and annuities:

1. **Annuitant Definition:**
– The annuitant is the person on whose life the annuity is based. This individual is entitled to receive the payments from the annuity.

2. **Annuity Contract:**
– An annuity is a contract between an individual (the annuitant) and an insurance company. The contract outlines the terms and conditions, including the payment schedule and any guarantees.

3. **Types of Annuities:**
– There are various types of annuities, including immediate annuities and deferred annuities. In an immediate annuity, payments begin shortly after the annuity is purchased. In a deferred annuity, payments are deferred until a future date.

4. **Payment Options:**
– Annuities can provide different payment options, such as a guaranteed income for life, a certain number of years, or joint and survivor options that cover the lives of two individuals.

5. **Tax Treatment:**
– The tax treatment of annuities can vary depending on the type of annuity and the jurisdiction. In some cases, the growth of the annuity may be tax-deferred until withdrawals are made.

6. **Guarantees and Options:**
– Annuities may offer various guarantees and options, such as a guaranteed minimum interest rate or a death benefit payable to beneficiaries.

7. **Payout Phase:**
– The annuitant enters the payout phase when they start receiving payments from the annuity. The payments can be structured based on the terms of the annuity contract.

8. **Beneficiaries:**
– Annuity contracts often allow the annuitant to designate beneficiaries who may receive remaining payments or a death benefit in the event of the annuitant’s death.

It’s important for individuals considering annuities to carefully review the terms of the contract, understand the various features, and assess how an annuity fits into their overall financial plan. Consulting with a financial advisor is recommended to ensure that an annuity aligns with individual financial goals and needs.