The beneficiary of an annuity during the accumulation phase is entitled to receive what upon the owner's death?

During the accumulation phase of an annuity, the beneficiary is entitled to receive the greater of the total contributions made towards the annuity or the cash value at the time of the owner's death. This provision ensures that the beneficiary receives the most favorable amount available, either reflecting the investment that the owner has made (the total payments) or the current value of the annuity which may include growth from interest or investment returns.

This design aims to offer some protection to the beneficiary by not penalizing them for the timing of the owner's death—providing a safety net that allows them to receive what is likely to be in the best financial interest, either through direct contributions made or the potential growth of those contributions in the form of cash value.

Other options do not capture the full mechanism of benefits and values computed within this context—therefore, they do not align with the principles governing annuity beneficiary entitlements.