What is the person who purchases an annuity plan referred to as?

The individual who purchases an annuity plan is referred to as the annuitant. This terminology is derived from the nature of annuities, which are financial products designed to provide a stream of payments to the purchaser over time, typically during retirement. The annuitant is the party who will receive these payments, making it essential for understanding the purpose of the annuity contract.

While other terms associated with annuities exist, such as owner or insured, these terms refer to different roles within the context of financial products. The owner is the one who holds the contract or policy and may or may not be the recipient of the benefits. Insured typically pertains to life insurance policies where the insured individual is the one whose life is covered by the policy. In contrast, the term annuitant specifically relates to the individual slated to benefit from the annuity's scheduled payouts. This distinction is crucial in the context of annuities, as it clarifies who is expected to receive the financial benefits of the plan.