What is a death waiver in an annuity?

A death waiver in an annuity is a provision that ensures a beneficiary receives a specified amount or the account value upon the death of the annuitant, regardless of market conditions at that time. This feature provides financial protection and guarantees that the invested funds will not be lost, offering peace of mind for both the annuitant and the beneficiary. It is often included in the terms of the annuity contract, and may result in a higher premium.