Which party is not involved in an annuity contract?

In an annuity contract, the primary parties involved are the provider, who issues or manages the annuity, the investor, who funds the annuity, and the annuitant, who receives the benefits or payments from the annuity during their lifetime or a specified period. The beneficiary is not a necessary party to the annuity contract itself, although they may be designated to receive any remaining benefits upon the death of the annuitant.

The key reason the beneficiary is not considered a core party of the annuity contract is that the contract primarily revolves around the relationship between the investor and the provider in relation to the annuitant. The role of the beneficiary is ancillary—they may come into play under specific circumstances, typically regarding payouts after the annuitant passes away, but their involvement does not affect the establishment or operational mechanics of the annuity contract itself.

Understanding this distinction clarifies the roles and expectations within an annuity, highlighting that the contract is fundamentally structured around the dynamics between the investor, provider, and annuitant.