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 New Mexico Request for Change of Beneficiary of Annuity is a legal document that allows the owner of an annuity to make modifications to the designated beneficiary of their annuity. This form is important for individuals in New Mexico who have an annuity and wish to update the beneficiary information. There are several types of New Mexico Request for Change of Beneficiary of Annuity forms, including: 1. Individual Annuity Change of Beneficiary Request: This form is used when the annuity owner wants to change the beneficiary designation on an individual annuity. It requires the annuity owner to provide their personal information, such as their name, address, and policy number, and also includes sections to list the original beneficiary and the new beneficiary. 2. Joint Annuity Change of Beneficiary Request: In the case of a joint annuity where two individuals are named as beneficiaries, this form allows for changes to be made to the beneficiary designation. It requires the annuity owners to provide their personal information, as well as the details of both the current and new beneficiaries. 3. Contingent Annuity Change of Beneficiary Request: This form is used when the annuity owner wants to designate a contingent beneficiary who would receive the annuity proceeds in the event of the primary beneficiary's death. It requires the annuity owner to provide their personal information, as well as the details of both the primary and contingent beneficiaries. It is important to carefully fill out a New Mexico Request for Change of Beneficiary of Annuity form, ensuring that all information is accurate and up to date. Once completed, the form should be submitted to the annuity provider or insurance company for processing. It is advised to keep a copy of the form for personal records. Keywords: New Mexico, request for change of beneficiary, annuity, legal document, modify, designated beneficiary, individual annuity, joint annuity, contingent annuity, beneficiary designation, annuity owner, annuity proceeds, primary beneficiary, contingent beneficiary, annuity provider, insurance company, personal records.
