What happens to an annuity when the owner dies?

When evaluating the policy, surrender charges, market value adjustments, rider fees, and tax consequences can reduce what an owner receives after an early exit. For this insurance planning decision, annuity contracts can contain multiple accounting values that serve different purposes. As part of the policy review, any exchange should compare the old contract's guarantees with the new contract's surrender period, costs, crediting rules, and insurer strength.