If a corporation is the annuitant in an annuity, which statement is true?

In the context of annuities, the role of the annuitant is quite specific and generally requires that an annuitant be a natural person. This is because annuities are designed to provide benefits based on the lifespan of an individual; thus, the contract must involve a living human whose age and life expectancy can be determined.

While corporations can own annuity contracts, they typically cannot serve as annuitants because corporations do not have lifespans in the same way that individuals do. An annuitant's age and life expectancy directly influence payment calculations, which would not be applicable when the annuitant is a corporation.

This principle is foundational to how annuity contracts are structured and helps ensure that benefits are distributed based on predictable human lifespans rather than the indefinite existence of an organization. Understanding this framework clarifies why an annuitant must be a natural person in any annuity contract.