Series 7: 8.2.1 Death Benefit

8.2.1  Death Benefit

If the annuitant dies during the accumulation period, before the insurance company has begun payments, if the contract so specifies, a beneficiary will receive the payments. This is called a death benefit. The payment the beneficiary receives will equal the total investments and any additional earnings from the annuity. If the annuity lost money, the beneficiary will receive the total invested money. The beneficiary is responsible for paying income taxes on the earnings.