Benefits payable – when and to whom (Annuities)

In my post dated 18^th August 2013 I have discussed this aspect in a policy bond pertaining to a conventional policy. Here the topic is discussed as it applies to an annuity policy. The policy bond gives the above in a tabular form:

Type of annuity                     To whom payable               Event on the happening of which                                                                                                      annuity ceases or determines

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Annuity for life                                  To the annuitant                      On death of the annuitant

Annuity with ROC*

Annuity for life, which is

Increasing @3% p.a.

*Return of capital

Annuity guaranteed for                To the annuitant, in case            On death of the annuitant or

5,10,15,20 years and for             of death of annuitant during         expiry of the guaranteed period

Life thereafter                             guaranteed period, to the            whichever is later

                                                Nominee

Annuity for life with a                  To the annuitant and on              On death of last survivor

provision for 50% / 100%            death of the annuitant, to

of the annuity to the spouse        the surviving named spouse

on death of the annuitant

Annuity for life with a provision

For 100% of the annuity to the

Spouse on death of the annuitant

With return of purchase price

on death of last survivor

Type of annuity given above is the result of an option to be exercised by the policyholder before annuity payments commence. We shall see the options under annuities in the coming posts.