The ____ is sometimes called the 'annuity grantee,' but is also often referred to as the 'annuitant.'

The ____ is sometimes called the 'annuity grantee,' but is also often referred to as the 'annuitant.'

• A. Payee
• B. Beneficiary
• C. Policyholder
• D. Agent

Answer: (A)

In an annuity contract, the person who actually receives the periodic payments is the payee. The term annuity grantee describes the entity granted the right to those payments, which aligns with being the payee. The annuitant, on the other hand, is the person on whose life the payout amount is based; in many cases the payee and the annuitant are the same person, which is why the annuitant is often mentioned in connection with the annuity payments. The beneficiary receives death benefits, the policyholder (owner) holds the contract, and the agent is the salesperson. Therefore, the best fit is the payee.

In an annuity contract, the person who actually receives the periodic payments is the payee. The term annuity grantee describes the entity granted the right to those payments, which aligns with being the payee. The annuitant, on the other hand, is the person on whose life the payout amount is based; in many cases the payee and the annuitant are the same person, which is why the annuitant is often mentioned in connection with the annuity payments. The beneficiary receives death benefits, the policyholder (owner) holds the contract, and the agent is the salesperson. Therefore, the best fit is the payee.