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.
Title: Understanding Virginia Request for Change of Beneficiary of Annuity Description: In this article, we will delve into the nuts and bolts of a Virginia Request for Change of Beneficiary of Annuity. We will explore its purpose, significance, and various types of annuity beneficiary changes in Virginia. If you are looking for detailed information about modifying the beneficiary designation on your annuity account, keep reading to understand this crucial aspect. Keywords: Virginia, Request for Change of Beneficiary of Annuity, annuity beneficiary changes, modify beneficiary designation, annuity account 1. Virginia Request for Change of Beneficiary of Annuity A Virginia Request for Change of Beneficiary of Annuity is a legal document used by policyholders in Virginia to alter the beneficiary designation on their annuity accounts. It allows individuals to update their existing beneficiary designations or add new beneficiaries according to their preferences or life circumstances. 2. Importance of a Request for Change of Beneficiary of Annuity Having a properly updated beneficiary designation is essential as it ensures that the proceeds from the annuity account are distributed precisely as intended by the policyholder, upon their passing. A Request for Change of Beneficiary of Annuity is a powerful tool to ensure that the annuity benefits are directed to the desired recipients without legal disputes or challenges. 3. Types of Virginia Request for Change of Beneficiary of Annuity a) Primary Beneficiary Change: This type of change allows the annuity owner to modify the primary beneficiary of the annuity account. It involves naming a new individual or entity who will receive the annuity benefits first, in case of the policyholder's demise. b) Contingent Beneficiary Change: A contingent beneficiary is the person or entity entitled to receive the annuity proceeds if the primary beneficiary is unable to receive them, either due to predeceasing the annuity owner or disclaiming the benefits. This type of beneficiary change lets the policyholder update or add contingent beneficiaries. c) Percentage Change: With a percentage change, the annuity owner can allocate specific percentages of the annuity proceeds to different beneficiaries. This option allows for a customized distribution based on individual preferences and personal circumstances. d) Successor Beneficiary Change: In the case of a named beneficiary's death or ineligibility, the successor beneficiary takes their place as the designated recipient of annuity benefits. By opting for a successor beneficiary change, the annuity owner can keep a backup plan intact, ensuring the desired distribution of funds. 4. How to Complete a Virginia Request for Change of Beneficiary of Annuity To initiate a Request for Change of Beneficiary of Annuity in Virginia, policyholders must obtain the official form from their respective annuity provider or insurance company. The form typically requires essential information like the annuity contract details, names, addresses, and Social Security numbers of new and existing beneficiaries. Additionally, it may include witness requirements or notarization for legal compliance. Conclusion: Understanding the Virginia Request for Change of Beneficiary of Annuity is crucial for individuals who wish to modify their annuity's beneficiary designation. By comprehending the different types of beneficiary changes available and following the proper protocol, annuity owners can ensure their wishes are fulfilled and their loved ones are taken care of accordingly.
