Joint and Survivor Annuity
Definition
- An annuity that continues to make income payments for as long as at least one of the annuitants remains alive. Often purchased by couples, a joint and survivor annuity guarantees that a spouse will continue to receive income for the rest of their life. Options exist which can allow payments to continue in full after an annuitant's death or for them to decrease by a specified percentage. Guaranteed terms may be available to pay beneficiaries in the event that the annuitants die before a certain term (usually 5, 10 or 15 years). Also known as a "Joint Life and Last Survivor Annuity."
Synonyms
joint life and last survivor annuity, survivor annuity
Related Terms and Acronyms
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Cash Refund Annuity — Definition,
- An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Guarantee Period — Definition,
- A time period where income payments from an annuity are guaranteed.
- Life Annuity — Definition,
- An annuity that will continue to make payments until the death of the annuitant.
- Second-To-Die Insurance — Definition,
- Life insurance that only pays a death benefit when both spouses have died, commonly used in estate planning.
- Straight Life Annuity — Definition,
- An annuity that stops all payments upon the annuitant's death.
- Survivorship — Definition,
- The right of a person to secure ownership by reason of his/her outliving someone with whom s/he shared undivided interest in the land.
