During the liquidation phase of an annuity contract, to whom are the income benefits normally payable?

During the liquidation phase of an annuity contract, the income benefits are normally payable to the annuitant. This phase is when the annuity starts to disburse regular payments, and these payments are typically made directly to the individual who has purchased the annuity and is entitled to receive those benefits. The annuitant is the person designated to receive the income, reflecting the purpose of the annuity to provide financial support through a series of payments over time, usually during retirement.

The other options do not apply because the beneficiary typically receives benefits upon the annuitant's death, the insurer is responsible for disbursing payments but does not receive them as an income benefit, and the policyholder might refer to someone who owns the policy but does not necessarily mean they are the one receiving the liquidation payments if they are not the annuitant. Thus, the direct relationship between the annuitant and the income payments confirms the correctness of this answer.