Payee

Definition icon. Definition:

The payee is the person who receives the periodic payments made during the payout phase of the annuity. Two or more payees on one annuity may be called joint payees, contingent payees or co-payees.

You may also find that in some contracts the annuitant

An annuitant may also be the person or people upon whose life expectancy the annuity is based. (Life expectancy is the average length of time a person can be expected to live based on his age.) When there is more than one annuitant you may see the terms joint annuitants or co-annuitants.

is identified as the person who will receive payments under the annuity contract. Regardless of what an annuity contract calls the person receiving the payments, for health care purposes the person(s) receiving the periodic payments from the annuity is the payee.

Remember! Contracts may use the term payee, annuitant or both. Be sure to check the definitions used in the contract to ensure you are identifying the correct party.

FYI icon. Use:

Identifying the payee determines if income is available to the client or another person from whom the client deems. Identifying the payee is also used to evaluate the annuity using transfer policy for MA payment of LTC services.

Example:

Phyllis purchases an annuity. She establishes the payment schedule and designates her husband, John, as the person who will receive the payments. John is the payee. Phyllis is the owner.