Final answer:
During the liquidation phase of an annuity contract, the income benefits are normally payable to the annuitant, who is the individual intended to receive the payments during the distribution phase.
Step-by-step explanation:
During the liquidation phase of an annuity contract, the income benefits are normally payable to the annuitant. An annuitant is the person on whose life the annuity is based and who will receive payments during the distribution phase. This contrasts with the accumulation phase where payments are made into the annuity. The objective of an annuity is to provide a steady stream of income, typically during retirement, to the annuitant who can be the same person as the policy owner but not always.
If the annuitant passes away, if the contract includes a beneficiary clause, remaining payments or benefits may shift to the designated beneficiary. However, during the normal course of the contract's liquidation phase, absent of a death or other specific provisions, it is the annuitant who receives the payments.