With the right type of annuity and strategy, you can choose to have annuity payments continue to go to his or her child or children for the remainder of their lives, too. While you may never even meet your great-grandchildren, they too can receive a regular gift from you.

What are the features of a variable annuity?

A typical variable annuity offers three basic features not commonly found in mutual funds:

• tax-deferred treatment of earnings;
• a death benefit; and.
• annuity payout options that can provide guaranteed income for life.

  Do variable annuities have beneficiaries?

  For most variable annuities, beneficiaries receive at least the original amount the owner contributed. For fixed annuities, the beneficiary receives the present value of payments. However, the annuitant can purchase a refund option or period certain rider, and a beneficiary would receive any remaining payments.

  Can you give an annuity to someone else?

  To give the annuity away, you simply contact the insurance company and state that you want to gift the ownership of the annuity policy to someone else or a trust. There are some tax implications to consider with this, though. Before you give an annuity away, you need to look at its status.

  Are annuities good for kids?

  The second way to solve for Income Later is the only pension solution that you can use for your kids and grand kids. It’s called a Longevity Annuity. This relatively new strategy allows you to defer payments for as long as 45 years, and provide a lifetime income stream just like a pension.

  How to set up an annuity for your children?

  Annuity Setup. To name your children as beneficiaries of an annuity when setting it up, fill in their names on the form provided by the insurance company or financial institution offering the annuity contract. Some annuities allow you to include the percentages of distribution you desire — divide the annuity evenly between your children…

  What are the benefits of a variable annuity?

  Variable annuities allow you to spread your wealth across a wide range of investment options which may help grow your assets, tax-deferred ‡. Unlike fixed and fixed index annuities, variable annuities involve investment risks and may lose value.

  What kind of annuity should I buy for my grandchild?

  But one of the best options, an income annuity, is usually overlooked. It’s an ideal vehicle for leaving a legacy. An annuity offers unique benefits. It’s the only gift guaranteed to keep on giving for a lifetime. Here’s how it would work for a grandchild.

  Who is the beneficiary of a variable annuity when the owner dies?

  For most variable annuities, beneficiaries receive at least the original amount the owner contributed. For fixed annuities, the beneficiary receives the present value of payments. For some immediate annuities, such as a lifetime immediate income annuity without term certain, the insurance company keeps the money when the owner dies.