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.
Arizona Request for Change of Beneficiary of Annuity is a legal document that allows individuals in the state of Arizona to update the beneficiary designation for an existing annuity contract. This request may be necessary due to various reasons such as marriage, divorce, birth of a child, or a change in financial circumstances. By utilizing this form, individuals can ensure that their annuity proceeds are distributed according to their updated wishes. Key aspects to include when completing an Arizona Request for Change of Beneficiary of Annuity are the full legal names, addresses, and social security numbers of both the annuity contract owner and the current beneficiary. It is important to accurately identify the annuity contract by providing relevant policy numbers, issue dates, and the name of the insurance company issuing the annuity contract. Furthermore, it is crucial to specify the new beneficiary's complete information, including their legal name, address, and social security number. This ensures that the beneficiary receives the annuity proceeds in the event of the annuity owner's death. It is advisable to consult an attorney or financial advisor to ensure that the beneficiary designation aligns with the individual's overall estate planning goals. There are no specific types of Arizona Request for Change of Beneficiary of Annuity forms available, as the document itself primarily represents a general request for updating beneficiary information. However, one may come across variations of this form depending on the specific insurance company providing the annuity contract. These company-specific forms may include additional questions or sections required by the insurer to process the beneficiary change effectively. Completing this form accurately and thoroughly is of utmost importance to prevent any complications or disputes regarding the inheritance of the annuity proceeds. Arizona's residents are advised to keep a copy of the completed Arizona Request for Change of Beneficiary of Annuity form for their own records and notify the selected beneficiary of this change. Regularly reviewing and updating beneficiary designations is crucial to ensure that one's assets are distributed according to their desired distribution plan.
