If an annuity owner dies during the accumulation period without a named beneficiary, what happens to the cash value?

When an annuity owner dies during the accumulation period and there is no named beneficiary, the cash value of the annuity is paid to the estate of the annuity owner. This is because, in the absence of a designated beneficiary, the annuity becomes part of the deceased's estate and is treated as an asset. The estate will go through the probate process, where the assets, including the cash value of the annuity, will be distributed according to the terms of the will or state law if there is no will.

This situation underscores the importance of naming a beneficiary in an annuity contract to ensure that the intended individuals receive the benefits directly without the complexities of probate.