Standard Death Benefit
Most deferred annuities include a standard death benefit equal to the contract's accumulated value (or in some cases, the greater of accumulated value or premiums paid), payable to your named beneficiary, generally without going through probate.
Enhanced Death Benefit Riders
Some contracts offer an optional enhanced death benefit rider for an additional fee, which may guarantee a higher amount than the standard contract value death benefit.
Naming and Updating Beneficiaries
Keeping beneficiary designations current is important — life events like marriage, divorce, or the death of a previously named beneficiary should prompt a review of your annuity's beneficiary designation.
Income Annuities Are Different
Once a contract is annuitized into income payments, the death benefit (if any) depends entirely on the payout option selected at annuitization — some options stop payments entirely at death, while others guarantee payments for a minimum period or to a beneficiary.
Key Takeaways
- Most deferred annuities pass remaining value to a named beneficiary outside of probate.
- Enhanced death benefit riders are optional and carry an additional cost.
- Once annuitized, death benefit treatment depends entirely on the payout option chosen.
Death benefit terms vary significantly by product and elected riders. Guarantees are backed by the claims-paying ability of the issuing insurance company. This is general education, not a description of any specific contract.
Free Consultation
Have Questions About Your Situation?
Every situation is different. Our Wyoming and Utah advisors provide free, personalized guidance — no pressure, no obligation.