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: District of Columbia Request for Change of Beneficiary of Annuity — A Comprehensive Guide Introduction: In the District of Columbia, a Request for Change of Beneficiary of Annuity is a significant document that enables annuity contract holders to update or modify the designated beneficiary of their annuity policies. This detailed guide will provide you with essential information about the process, requirements, importance, and different types of such requests. I. Understanding the District of Columbia Request for Change of Beneficiary of Annuity: 1. Definition: — The District of Columbia Request for Change of Beneficiary of Annuity is a legal instrument used to alter the beneficiary designation of an existing annuity policy within the jurisdiction of the District of Columbia. 2. Importance: — This request holds paramount importance as it allows annuity holders to ensure their assets and benefits are transferred to the desired individuals in the event of their death. — It provides an opportunity to update beneficiary information based on personal circumstances, such as marriage, divorce, birth of children, or changes in relationships. II. Types of District of Columbia Request for Change of Beneficiary of Annuity: 1. DC Form 5047 — Individual Annuity Designation of Beneficiary: — This form allows individual annuity policyholders to designate primary and contingent beneficiaries for their annuity contract. — Primary beneficiaries will receive the annuity benefits in the case of the annuity holder's death. — Contingent beneficiaries assume primary beneficiary status if the primary beneficiary cannot fulfill their role. 2. DC Form 5798 — Joint and Survivor Annuity Designation of Beneficiary: — This form is specific to joint annuities where two individuals are the annuitants. — It allows policyholders to designate beneficiaries who will receive annuity benefits upon the death of both annuitants. 3. DC Form 9179 — Change of Beneficiary— - This form is used to modify or update the existing beneficiary designation for various types of annuities. — It can be utilized for both individual and joint annuity policies and facilitates changes in primary and contingent beneficiaries. III. Procedure and Requirements for Filing the Request: 1. Download the appropriate DC Request for Change of Beneficiary form for your annuity type. 2. Complete the form accurately, ensuring that all necessary information is provided. 3. Include the annuity policy details, such as the policy number, annuity holder name, and contract information. 4. Clearly specify the new beneficiaries' names, addresses, Social Security numbers, and their relationship to the annuity holder. 5. Sign and date the form. 6. Submit the completed form to the annuity provider or insurance company by mail or through their online portal. Conclusion: The District of Columbia Request for Change of Beneficiary of Annuity is a crucial document enabling annuity holders to ensure that their assets are transferred according to their wishes upon their death. By employing the appropriate form and following the correct procedure, individuals can update their beneficiary designations as their circumstances change, ensuring the security and welfare of their loved ones.
