1. 4470 POINTS
    Brandon RobertsPRO
    Owner, The Insurance Pro Blog,
    This depends on what is happening with the annuity when someone dies and what type of annuity (owner or annuitant driven) we're talking about.

    For an annuity that is not paying income and the owner is the annuitant (i.e. the type of contract won't matter), the cash value of the annuity will be paid to the named beneficiary(ies) in the contract.

    If the annuity have been annuitized (i.e. is paying an income stream) the chosen option will determine what happens.  For life only annuity payments, the payments will stop and no further money will be paid out.

    For period certain annuities, the income will continue until the period certain has ended.

    For life with a refund (installment or lump sum cash) than the refund will pay the the named beneficiary(ies) until the cash value of the annuity has been paid out in full to the beneficiary(ies).
    Answered on August 30, 2013
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