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.
Keywords: Tennessee, Request for Change, Beneficiary, Annuity. Title: Tennessee Request for Change of Beneficiary of Annuity: A Comprehensive Guide and Types Introduction: The Tennessee Request for Change of Beneficiary of Annuity is a legal document used to alter the designated beneficiary of an annuity in the state of Tennessee. This detailed description aims to provide an in-depth understanding of the form, its purpose, and the types of changes that can be made. 1. What is a Tennessee Request for Change of Beneficiary of Annuity? The Tennessee Request for Change of Beneficiary of Annuity is a legal instrument that allows an annuity holder to modify the beneficiary designation associated with the annuity contract. This form allows for flexibility to revise the recipients of the annuity's benefits as per the annuity holder's requirements. 2. Key Components of the Tennessee Request for Change of Beneficiary of Annuity: a. Annuitant Information: This section requires the annuitant's personal details, including their full legal name, contact information, and relevant identification. b. Current Beneficiary Details: Here, the annuitant must provide information regarding the existing beneficiary, such as their full name, relationship to the annuitant, and contact information. c. Revised Beneficiary Information: In this section, the annuitant should include the updated beneficiary's complete name, relationship to the annuitant, and contact details. d. Beneficiary Allocation Percentage: The form allows the annuitant to specify the percentage of the annuity's benefits allocated to each revised beneficiary if there are multiple beneficiaries. e. Signatures and Notarization: The annuitant's signature and date are required, followed by a section for notarization to ensure the authenticity of the form. 3. Types of Tennessee Request for Change of Beneficiary of Annuity: a. Primary Beneficiary Change: This type of change occurs when the annuitant wishes to designate a new primary beneficiary, replacing the current primary beneficiary. b. Contingent Beneficiary Change: In this case, the annuitant specifies a new contingent beneficiary, who would receive the benefits if the primary beneficiary is unable to receive them. c. Multiple Beneficiary Change: This type of change allows the annuitant to add or modify multiple beneficiaries, indicating the percentage allocation for each beneficiary. Conclusion: The Tennessee Request for Change of Beneficiary of Annuity offers flexibility and control to annuity holders, enabling them to update the beneficiary designation as per their preferences. With options for primary, contingent, and multiple beneficiaries, this form ensures that the annuitant's desired individuals receive the annuity's benefits. It is crucial to complete the form accurately and seek legal advice if needed to guarantee the proper execution and compliance with Tennessee state laws.
