Can an annuity be left to beneficiaries?

Most contracts provide a death benefit or remaining value, but payout choices and taxes vary. When the contract terms are examined, an annuity is a contract with an insurance company that can accumulate value or provide income. The policy terms and current values should be the primary reference points, rather than assuming a sales illustration tells the whole story. Make sure the beneficiary designation and the broader estate plan point in the same direction, because the designation on file with the insurer generally controls who receives the policy proceeds.