Annuities✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
In an annuity contract, if no beneficiary is named, or all named beneficiaries predecease the owner, the proceeds payable at the owner's death will generally go to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
If an annuity owner dies without a valid named beneficiary, the contract value passes to the owner's estate. The beneficiary designation controls the destination of the proceeds, so when there is no living designated beneficiary, the funds become an asset of the estate and are subject to probate. This is why owners are encouraged to name and periodically review beneficiaries: a valid designation directs the proceeds directly to the intended person and keeps them out of the estate administration process.
Why the other options are wrong
- B) The annuitant's life measures the payments, but the proceeds belong to the owner, so the owner's estate, not the annuitant's, receives them when no beneficiary is named.
- C) The insurer never keeps the death proceeds absent a beneficiary; the contract value is an asset of the owner and must be paid out.
- D) Unclaimed property rules apply only after funds remain unclaimed for a statutory period, not as the default disposition at death.
Memory hook
No beneficiary named, the check follows the owner: proceeds go to the owner's estate and face probate.