If an annuitant dies before the annuitization occurs, what will the beneficiary receive?

When an annuitant dies before the process of annuitization occurs, the beneficiary is entitled to receive the greater of the premiums paid into the contract or the cash value at the time of the annuitant's death. This provision helps ensure that the beneficiary receives a benefit from the investment made in the annuity rather than losing it entirely.

Annuities are designed to provide a steady income stream during the lifetime of the annuitant. However, if the annuitant passes away before this income stream begins, the contract typically stipulates this payout structure to provide some value to the beneficiary. The intention is to protect beneficiaries from losing the benefits completely, creating a safety net that reflects the contributions made by the annuitant.

While other options presented might sound plausible, they do not accurately reflect the provisions generally associated with annuities in the event of the annuitant's premature death. For instance, beneficiaries usually do not receive the total value of the annuitization contract (which only applies once annuitization has happened), nor is there a fixed predetermined payout amount without considering premiums paid or cash value. Furthermore, the statement about the contract being void would not hold true, as it is designed to provide benefits to the beneficiary