New Jersey Life Insurance Practice Exam 2026 – Complete Study Resource

The individual entitled to receive benefits from an annuity is known as the beneficiary. In the context of annuities, the beneficiary is designated to receive the payments or the benefits that are stipulated in the annuity contract. This commonly includes scenarios where the annuity owner passes away before the payments begin or while they are still in the payout phase. The beneficiary can be a person or an entity that benefits from the annuity's value or income stream.

Understanding the role of the beneficiary clarifies the transactional purpose of an annuity, which serves to provide financial security to not just the annuity owner but also to the chosen beneficiary, ensuring that they can receive continued income or a lump sum following the owner’s death.