what is an annuitant

An annuitant is an individual who is entitled to receive benefits from an annuity. An annuity is a financial product that pays out income over a certain period, and the size of the payments is usually determined by the life expectancy of the annuitant as well as the amount invested. An annuitant may be the contract holder or another person, such as a surviving spouse. The annuitant is often called the "measuring life" in insurance terms because their life expectancy affects payouts. An annuitant can be a retired civil servant who receives a pension plan or an investor who has paid a sum of money to an insurance company in return for a regular income supplement. The annuitant may be eligible for a deferred annuity or an immediate annuity. A deferred annuity is usually a retirement investment similar to an IRA or 401(k) . The annuitant is the person whose life determines the annuity payouts, and the payments from these annuities provide a steady stream of income for annuitants, often retirees seeking financial stability.