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.
Mississippi Request for Change of Beneficiary of Annuity is a legal document used in the state of Mississippi to make changes to the designated beneficiary of an annuity policy. This document allows policyholders to update or modify the beneficiary designation for their annuity, ensuring that their assets are distributed according to their current wishes upon their passing. The Mississippi Request for Change of Beneficiary of Annuity form requires the policyholder to provide important information such as the policy number, current beneficiary's name, and contact information. Additionally, it will ask for the new beneficiary's full name, relationship to the policyholder, and contact details. The policyholder must carefully review and complete the form, ensuring that all information is accurate and up to date. It is crucial to note that Mississippi may offer different types or variations of the Request for Change of Beneficiary of Annuity form, depending on the specific annuity policy and its terms. These variations may include options such as partial beneficiary changes, contingent beneficiary designation, or primary beneficiary revisions. Partial Beneficiary Changes: This type of Request for Change of Beneficiary of Annuity form allows the policyholder to update only a portion of the beneficiary designation while keeping the remaining beneficiaries unchanged. For example, the policyholder may decide to remove or add a specific percentage of their annuity proceeds to a new beneficiary. Contingent Beneficiary Designation: With this variation of the form, the policyholder can designate a contingent beneficiary who will receive the annuity assets if the primary beneficiary is unable to inherit or predeceases the policyholder. This ensures that the annuity proceeds are distributed according to the policyholder's wishes, even in unforeseen circumstances. Primary Beneficiary Revisions: This type of Request for Change of Beneficiary of Annuity form allows the policyholder to make changes solely to the primary beneficiary designation. The primary beneficiary is the individual or entity chosen to receive the annuity assets upon the policyholder's passing. Policyholders may use this option to update the primary beneficiary due to changes in personal circumstances, such as marriage, divorce, or the birth of a child. Completing the Mississippi Request for Change of Beneficiary of Annuity accurately is crucial to prevent any confusion or disputes regarding the distribution of assets upon the policyholder's death. It is advisable for individuals considering making changes to consult with a legal professional or financial advisor to ensure compliance with state laws and to understand the potential tax implications involved.
