Legal Definitions - annuitant

An annuitant is the individual who is legally entitled to receive regular, periodic payments from an annuity contract or a pension plan. This person holds the direct right to these payments, which are typically disbursed over a specified period or for the remainder of their lifetime. Essentially, the annuitant is the primary recipient for whom the annuity or pension was established, giving them a status similar to a creditor regarding those payments.

Here are some examples to illustrate the role of an annuitant:

• Retirement Income Annuity: After years of saving, Maria decides to purchase an immediate annuity with a portion of her retirement funds. This annuity will provide her with a fixed monthly income for the rest of her life. In this scenario, Maria is the annuitant because she is the person who will directly receive these regular payments from the annuity contract.

• Structured Legal Settlement: Following a personal injury lawsuit, a court awards John a structured settlement instead of a single lump sum. This settlement is set up to pay him quarterly installments for the next 15 years. John is the annuitant because he is the individual legally designated to receive these scheduled, periodic payments as part of his settlement agreement.

• Company Pension Plan: When Sarah retires from her long-term employer, she begins to receive monthly pension checks from the company's defined benefit plan, which she contributed to throughout her career. Sarah is the annuitant because she is the designated recipient of these regular payments from her former employer's pension plan, based on her years of service.