What is the primary purpose of an annuity's beneficiary?

The primary purpose of an annuity's beneficiary is to receive benefits after the annuitant's death. In the context of an annuity, the beneficiary is the individual or entity designated to receive the remaining value of the annuity or any death benefit payable upon the death of the annuitant. This arrangement ensures that the financial resources built up through the annuity can be passed on to loved ones or designated heirs, providing them with financial support or security after the annuitant has passed away.

The function of the beneficiary is crucial because it aligns with the purpose of annuities, which are not just investment vehicles but also forms of financial protection and planning. This aspect of annuities helps individuals manage estate planning and leaves a legacy for their beneficiaries, making it an integral part of the annuity product.

In contrast, the other choices address functions that do not align with the role of a beneficiary. Paying premiums relates to funding the annuity itself, managing investment funds pertains to investment accounts rather than beneficiaries, and maintaining the contract involves administrative tasks that are not linked to the benefits received after death.