If the owner of an annuity contract stops making premium payments prior to payout, the annuitant has non-forfeiture options available based on the cash value accumulation prior to stop payment of premiums. What is one of the more common options?

Question

Quizplus · Accepted Answer

If an annuitant stops making premium payments, one of the more common non-forfeiture options available is to permit the contract to become paid up and the payments to be calculated based on the paid amount. This prevents the annuitant from losing the money invested and allows them to still receive payouts in the future, although they will be smaller than they would have been if premium payments had continued.

If the Owner of an Annuity Contract Stops Making Premium