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: Colorado Request for Change of Beneficiary of Annuity: A Comprehensive Guide Introduction: In the state of Colorado, individuals who own annuity contracts have the option to change the designated beneficiary of their annuity at any given time. This process involves submitting a "Request for Change of Beneficiary of Annuity" form to the annuity company or insurance provider. This article aims to provide a detailed description of what this form entails, its significance, and different types of requests related to changing beneficiaries of annuities within Colorado. 1. Understanding the Colorado Request for Change of Beneficiary of Annuity Form: The Colorado Request for Change of Beneficiary of Annuity form is a legally binding document used to request a change in the designated beneficiary of an annuity contract. It provides crucial information about the annuity holder, the current beneficiary, and the desired new beneficiary. This form acts as a written instruction to the annuity company or insurance provider, helping ensure the rightful distribution of funds in the event of the annuity holder's death. 2. Key Components of the Colorado Request for Change of Beneficiary of Annuity Form: a. Annuitant Information: The form requires the annuity holder to provide their full name, address, contact details, and any additional information required for identification purposes. b. Current Beneficiary Details: The existing beneficiary's name, contact information, relationship to the annuity holder, and their Social Security or tax identification number must be provided. c. Desired New Beneficiary Information: The form requests the full name, address, contact details, and relationship of the new beneficiary to the annuity holder. d. Annuity Contract Details: The form may require the annuity contract number, account number, or other identifying information to ensure accuracy. e. Signature and Date: The annuity holder must sign and date the form, affirming their consent and authorization for the beneficiary change. 3. Types of Colorado Request for Change of Beneficiary of Annuity: While the primary purpose of the form is to change the designated beneficiary of an annuity, there may be additional variations depending on specific circumstances: a. Primary Beneficiary Change: This type involves changing the primary beneficiary, who receives the annuity proceeds upon the annuitant's death. b. Contingent Beneficiary Change: Contingent beneficiaries receive the annuity proceeds if the primary beneficiary is deceased or unable to collect the funds. c. Partial Beneficiary Change: This request allows the annuity holder to change only a portion of the annuity proceeds designated for a specific beneficiary. d. Revocation of Beneficiary Designation: In some cases, the annuity holder may wish to revoke the beneficiary designation altogether, nullifying any previous beneficiary permissions. Conclusion: When considering the Colorado Request for Change of Beneficiary of Annuity, it is crucial to complete the form accurately and submit it to the annuity company or insurance provider promptly. Seeking legal counsel or consulting with a financial advisor is recommended to ensure your wishes are properly executed. Remember, a properly updated beneficiary designation will safeguard the intended distribution of annuity proceeds, providing financial security for your loved ones.
