Annuities✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Which right does the owner of an annuity contract typically possess?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The owner holds the bundle of contractual rights, including naming and changing beneficiaries, selecting payout options, making withdrawals or surrenders, and transferring the contract. Changing the beneficiary is a core ownership right unless an irrevocable beneficiary designation has been made. These rights are central to the owner's control over the contract.
Why the other options are wrong
- B) Mortality tables are actuarial tools of the insurer's pricing process; no owner can alter them.
- C) Income payments are structured by the payout option selected by the owner at annuitization; they are not made at the annuitant's whim.
- D) Income payments are measured by the annuitant's life, not the beneficiary's; the beneficiary's lifespan does not determine the income stream.
Memory hook
Owner = the boss of the contract: beneficiaries, options, and surrender all answer to the owner.