An annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Annuities typically offer tax-deferred growth of earnings and may include a death benefit that will pay your beneficiary a guaranteed minimum amount, such as your total purchase payments.
There are generally two types of annuities -- fixed and variable. In a fixed annuity, the insurance company guarantees that you will earn a minimum rate of interest during the time that your account is growing. The insurance company also guarantees that the periodic payments will be a guaranteed amount per dollar in your account. These periodic payments may last for a definite period, such as 20 years, or an indefinite period, such as your lifetime or the lifetime of you and your spouse.
In a variable annuity, by contrast, you can choose to invest your purchase payments from among a range of different investment options, typically mutual funds. The rate of return on your purchase payments, and the amount of the periodic payments you will eventually receive, will vary depending on the performance of the investment options you have selected.
A North Dakota Request for Change of Beneficiary of Annuity is a legal document used to request a change in the designated beneficiary of an annuity contract in the state of North Dakota. This document allows the policy owner to update or modify the beneficiary designation on their annuity contract according to their current wishes. In North Dakota, there are typically two types of requests for change of beneficiary of annuity forms: Individual and Revocable Trust. An Individual Request for Change of Beneficiary of Annuity is used when the policy owner wants to name an individual as the beneficiary of their annuity. This could be a spouse, child, relative, or any other person of their choosing. On the other hand, a Revocable Trust Request for Change of Beneficiary of Annuity is employed when the policy owner wishes to designate a revocable trust as the beneficiary. This allows for greater control over the distribution of funds and the potential for tax planning purposes. When completing a North Dakota Request for Change of Beneficiary of Annuity, certain information must be provided. This includes the policy number, name of the current annuity contract owner, the name and contact information of the new beneficiary, and the relationship of the new beneficiary to the annuity contract owner (if applicable). Additionally, the date and signature of the annuity contract owner are required for the form to be considered valid. It is crucial for individuals to carefully review and understand the terms of their annuity contract before submitting a Request for Change of Beneficiary. Any restrictions or limitations on beneficiary changes should be taken into account. It is advisable to consult with a financial advisor or an attorney knowledgeable in annuity contracts and estate planning to ensure that all legal requirements are met and that the beneficiary designation aligns with the annuitant's overall financial objectives and wishes. In summary, a North Dakota Request for Change of Beneficiary of Annuity is a document used to modify the beneficiary designation of an annuity contract in the state of North Dakota. The two main types of forms include Individual and Revocable Trust, providing options for choosing an individual or a revocable trust as the new beneficiary. Careful consideration and professional advice should be sought when completing this request to ensure compliance with legal requirements and the annuitant's intentions.
