Who typically makes the purchase payments in an individual annuity?

In an individual annuity, the owner typically makes the purchase payments. The owner is the individual who holds the annuity contract and is responsible for funding it, either through a lump-sum payment or a series of payments over time. This funding creates the annuity, which can then provide income or benefits at a future date, such as during retirement.

The reason this choice is the correct one lies in the nature of annuities themselves. They are financial products meant for personal investment, and the owner controls how much money is contributed to the annuity. The insurer is the company providing the annuity product, but they do not make the purchase payments. The beneficiary, who may receive the benefits after the owner's death, does not pay into the annuity. Lastly, the state has no role in the purchase payments unless it is in a regulatory or oversight capacity. Therefore, the owner is the central figure in the transaction, making this answer accurate within the context of individual annuity purchases.