Question

As a party to the annuity contract, the annuitant is:

a. the individual by whose life the contract's benefits are measured.
b. the party who can exercise the rights of the contract.
c. the party responsible for paying the benefits due under the contract.
d. the party to whom benefits are payable in the event the contract ceases due to the death of another party.

Answer 1

The annuitant is the individual by whose life the contract's benefits are measured. They receive the annuity payments, but may not be the one who pays the benefits or exercises the rights of the contract.

Step-by-step explanation:

The annuitant in an annuity contract is the individual by whose life the contract's benefits are measured. They are the person upon whose life the annuity payments are based. The annuitant is not necessarily the policyholder or the person who pays the premiums for the contract.

The annuitant is not responsible for paying the benefits due under the contract. They are the party to whom benefits are payable in the event the contract ceases due to the death of another party. They receive the annuity payments.

The annuitant may or may not be the party who can exercise the rights of the contract. This depends on the terms of the specific annuity contract. The policyholder or annuity owner typically has the ability to make decisions regarding the contract and its benefits.