Annuities are transfer of risk strategies that primarily solve for lifetime income or principal protection.  You can structure all annuities (regardless of type) so that any unused money will go to the listed beneficiaries on the policy.  In other words, the annuity company is on the hook to provide the contractual guarantee, but you can structure it so that they will never keep a penny.  Most consumers are not aware of this principal protection provision, and believe that the evil annuity company will keep any unused money when they die.  That is just not true.

At the time of your annuity application (regardless of type) you will be able to list the beneficiaries on the policy, and what percentages they will receive upon your death.  You can list as many policy beneficiaries as you want.  There is no limit.  You can also rank them as primary, secondary, and tertiary (i.e. third) so that there is a ranking order of who will receive the death proceeds.

For example, let's say you list your spouse as primary beneficiary, your children as secondary beneficiaries, and your grandchildren as tertiary beneficiaries. If you die and your spouse is alive, your spouse would receive all of the money if they were a 100% primary beneficiary.  If you and your spouse died together in an accident, then your children would step up to be the primary beneficiaries...and so on.

The bottom line is that you can change the beneficiaries on your policy at will and up until the day you die.

Contact Stan The Annuity Man for the best and highest contractually guaranteed quotes shopping all carriers and using Stan's proprietary annuity calculators.  You can also receive Stan's 6 Annuity Owner's Manuals for free and under no obligation.