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.
Maryland Request for Change of Beneficiary of Annuity forms are legal documents used in the state of Maryland to update or modify the beneficiary designation for an annuity policy. This request allows annuity policyholders to ensure that the intended person or entity will receive the benefits upon the policyholder's death. The process for changing a beneficiary involves completing and submitting the appropriate form to the annuity provider. In Maryland, there are various types of Request for Change of Beneficiary of Annuity forms, including: 1. Individual Beneficiary Change Form: This form is used when the policyholder wants to designate an individual as the new beneficiary of their annuity policy. The form typically requires the policyholder's name, policy number, and the new beneficiary's name, relationship to the policyholder, and contact information. 2. Primary and Contingent Beneficiary Change Form: This type of form allows the policyholder to name both a primary beneficiary, who will receive the annuity benefits upon the policyholder's death, and a contingent beneficiary, who will receive the benefits if the primary beneficiary predeceases the policyholder. The form requires the same information as the individual beneficiary change form but with the addition of designating primary and contingent beneficiaries. 3. Revocable and Irrevocable Beneficiary Change Form: Maryland residents may also have the option to choose between revocable and irrevocable beneficiary designations. A revocable beneficiary designation allows the policyholder to change or revoke the chosen beneficiary at any time without the beneficiary's consent. On the other hand, irrevocable beneficiary designations require the beneficiary's consent for any changes. There may be separate request forms for each type of beneficiary change. 4. Trust Beneficiary Change Form: Maryland residents who have set up a trust may opt to name the trust as the beneficiary of their annuity policy. The trust beneficiary change form typically requires the policyholder to provide details about the trust, including its name, trustee's name, and contact information. It is crucial to carefully complete the Maryland Request for Change of Beneficiary of Annuity form by double-checking all the information provided. Additionally, it may be advisable to consult with an attorney or financial advisor to ensure that the beneficiary change aligns with the policyholder's overall estate planning goals and the laws of the state of Maryland.
