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.
Here is a detailed description of the Virgin Islands Request for Change of Beneficiary of Annuity, along with relevant keywords: The Virgin Islands Request for Change of Beneficiary of Annuity is a legal document that allows an annuity holder in the U.S. Virgin Islands to update or modify the designated beneficiary of their annuity. This form is important as it ensures that the annuity proceeds are disbursed to the intended recipient upon the policyholder's demise. Keywords: 1. Virgin Islands: Refers to the group of islands located in the Caribbean Sea, under the jurisdiction of the United States. 2. Request for Change of Beneficiary: Indicates the purpose of the form, which is to make changes to the beneficiary designation. 3. Annuity: A financial product that provides a steady stream of income over a certain period, commonly used for retirement savings and future financial security. 4. Beneficiary: The individual or entity who will receive the annuity proceeds upon the annuitant's death. 5. Change of Beneficiary: Highlights the action of updating or altering the previously designated beneficiary. 6. Legal Document: Emphasizes the formal nature of the form, indicating its significance and requirement to ensure a legally binding change in beneficiary. 7. Annuity Holder: The policyholder or the owner of the annuity contract. 8. Disbursement: The act of distributing or paying out the annuity funds to the designated beneficiary. 9. U.S. Virgin Islands: Distinguishes the specific location and jurisdiction the form is applicable to. Different types of Virgin Islands Request for Change of Beneficiary of Annuity: 1. Individual Annuity Request for Change of Beneficiary: Refers to the form used when an individual policyholder wants to modify the beneficiary designation of their personal annuity. 2. Joint Annuity Request for Change of Beneficiary: Pertains to the form utilized when multiple individuals jointly own an annuity and require a change in beneficiary. 3. Employee Annuity Request for Change of Beneficiary: Specific to annuity plans offered by employers, this variation of the form caters to employees who wish to change their beneficiary designation under their employer-sponsored annuity.
