Which of these statements regarding the annuitant is CORRECT?

The correct statement regarding the annuitant is that the annuitant's life expectancy determines the annuity payments. This is crucial because annuities are designed to provide income during the annuitant's lifetime and the amount of those payments is largely based on their expected longevity. Life expectancy is a key factor that actuaries use to calculate how much the insurance company should pay out over time, taking into account how long they anticipate the annuitant will live.

When annuity payments are established, they can be structured in various ways, often directly related to the life expectancy of the annuitant. For example, a life annuity pays benefits for the lifetime of the annuitant, meaning that the payments will be larger for someone with a shorter life expectancy and smaller for someone expected to live longer.

In contrast, the ability to change the annuitant or the requirement for the annuitant to be the policyowner are not universally applicable and can vary based on the specific terms of the annuity contract. Additionally, the statement regarding payments only beginning upon the death of the annuitant is inaccurate since annuities typically start to pay out during the lifetime of the annuitant.