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.
Nebraska Request for Change of Beneficiary of Annuity is a legal document that allows the annuity holder to designate a new beneficiary for their annuity account. This document is commonly used when the annuity holder wishes to update their beneficiary information due to a change in personal circumstances such as a marriage, divorce, birth, or death. The Nebraska Request for Change of Beneficiary of Annuity is essential in ensuring that the annuity benefits are distributed according to the annuity holder's wishes. By completing this form, the annuity holder can specify the updated beneficiary's name, relationship to the annuity holder, contact information, and the percentage of the annuity benefits they should receive. Different types of Nebraska Request for Change of Beneficiary of Annuity may include: 1. Individual Annuity: This type of annuity allows the annuity holder to designate a specific individual as the beneficiary. The individual could be a spouse, child, sibling, or any other person with a valid relationship to the annuity holder. 2. Trust or Estate Annuity: In some cases, the annuity holder may choose to name a trust or their estate as the beneficiary. This option is often chosen for estate planning purposes or to ensure that the annuity benefits are distributed according to specific instructions after the annuity holder's passing. 3. Multiple Beneficiaries: The annuity holder may also have the option to name multiple beneficiaries for their annuity account. This can be done by indicating the percentage or fraction of the annuity benefits that each beneficiary should receive. It is crucial to carefully fill out the Nebraska Request for Change of Beneficiary of Annuity form to avoid any confusion or disputes in the future. The annuity holder should review the completed form, sign it, and ensure that it is properly notarized to make it legally binding. In summary, the Nebraska Request for Change of Beneficiary of Annuity is a vital document for annuity holders to update their beneficiary information. Whether it is an individual annuity, trust/estate annuity, or multiple beneficiaries, this form allows annuity holders to maintain control over the distribution of their annuity benefits according to their wishes.
