What is Joint and Last Survivor Annuity?

A joint and last survivor annuity is a type of annuity that provides for the payment of periodic payments to two individuals, typically a married couple, with the payments continuing to be made to the surviving individual after the death of the first annuitant.

An annuity is a financial product that provides for the payment of periodic payments, typically on a monthly or quarterly basis, to an individual for a specified period of time. Annuities are often used as a source of retirement income, as they provide a guaranteed stream of income that can help to supplement other sources of retirement income such as social security and pension benefits.

There are several types of annuities, including fixed annuities, variable annuities, and indexed annuities. A joint and last survivor annuity is a type of fixed annuity, which means that the payments are fixed and do not fluctuate based on the performance of the underlying investments.

A joint and last survivor annuity is typically used by married couples as a way to provide a guaranteed source of income in retirement. The annuity payments are made to both individuals during their lifetime, with the payments continuing to be made to the surviving individual after the death of the first annuitant. This can provide financial security and peace of mind for the surviving spouse, as they will continue to receive the annuity payments even if their spouse passes away.

One of the key benefits of a joint and last survivor annuity is that it can provide a guaranteed source of income for the surviving spouse, which can help to alleviate financial concerns and provide a sense of security in the event of the death of the first annuitant. This can be especially important for couples who are relying on the annuity as a significant source of retirement income.

There are several factors to consider when deciding whether a joint and last survivor annuity is the right choice for a married couple. These factors can include the age of the couple, their retirement savings and other sources of income, their overall financial goals and objectives, and their risk tolerance.

It is important to carefully review the terms and conditions of a joint and last survivor annuity before purchasing one, as the terms and conditions can vary significantly from one insurer to another. It may also be a good idea to consult with a financial advisor or insurance professional to determine whether a joint and last survivor annuity is the right choice for a particular couple’s needs and goals.

In summary, a joint and last survivor annuity is a type of fixed annuity that provides for the payment of periodic payments to two individuals, typically a married couple, with the payments continuing to be made to the surviving individual after the death of the first annuitant. This type of annuity can provide a guaranteed source of income for the surviving spouse and can be a useful financial planning tool for married couples. However, it is important to carefully review the terms and conditions of a joint and last survivor annuity and to consult with a financial advisor or insurance professional before purchasing one.