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.
Arkansas Request for Change of Beneficiary of Annuity is a legal document that allows individuals to update or alter the designated beneficiary of their annuity contract in the state of Arkansas. This form is commonly used when policyholders want to make changes due to personal circumstances, such as marriage, divorce, birth of a child, or in the event of a beneficiary's death. It ensures that the annuity proceeds are distributed according to the policyholder's updated wishes, avoiding potential complications or disputes in the future. Key points to include in a detailed description of the Arkansas Request for Change of Beneficiary of Annuity form: 1. Purpose: The Arkansas Request for Change of Beneficiary of Annuity is specifically designed to enable annuity holders to modify the beneficiary designation associated with their annuity policy legally. 2. Policyholder Information: The form requires detailed information about the existing policyholder, including their full name, contact details, current annuity contract number, and any other pertinent information necessary to identify the existing annuity policy accurately. 3. Beneficiary Information: The document must capture comprehensive details of the new beneficiary, including their full name, contact information, Social Security number, relationship to the policyholder, and any other relevant identification information. 4. Description of Annuity Policy: The form should include a clear and concise description of the annuity policy that is subject to the beneficiary change request. This may include the policy's unique identifier, issuer details, and any relevant terms or conditions affecting the beneficiary designation. 5. Effective Date: The policyholder should specify the desired effective date of the requested beneficiary change. This ensures that the annuity proceeds will be distributed according to the updated beneficiary designation from the specified date forward. 6. Policyholder's Signature: The form must have a designated section where the policyholder can sign and date the document, certifying the accuracy of the information provided and the intent to change the beneficiary of the annuity policy. 7. Witness or Notary Requirements: Depending on the specific requirements in Arkansas, the form may need to be witnessed by at least one person or be notarized for it to be considered valid. Different types of Arkansas Request for Change of Beneficiary of Annuity forms may exist based on the annuity company or specific annuity product. However, the core purpose remains the same — allowing policyholders to update their annuity beneficiaries accurately and legally.
