DEFINITION of 'Joint-Life Payout'

One of two options normally available for retirees to choose as the method of payout for their employee retirement benefits. The joint-life payout option allows the retiree to receive benefits during the remainder of his/her life and guarantees income for another person after he/she has died, most often this other person is the retiree's spouse. Unless the retiree's statements explicitly states the joint-life payout, the default payout option is the single-life option.

BREAKING DOWN 'Joint-Life Payout'

In contrast, a single-life option will pay out benefits to a retiree starting at retirement, but the payouts cease upon the retiree's death. Choosing a payout option is an important decision and several factors should be taken into consideration, such as health, anticipated life expectancy and family's financial circumstances.

RELATED TERMS
  1. Payout

    The expected financial return from an investment over a given ...
  2. Sequence Risk

    The risk of receiving lower or negative returns early in a period ...
  3. Single Payment Options Trading ...

    A type of option product that allows an investor to set not only ...
  4. Atlas Options

    An equity-based exotic option from the family of mountain range ...
  5. Target Payout Ratio

    A target payout ratio is a measure of what size a company's dividends ...
  6. Fixed Annuitization Method

    One of three methods by which early retirees of any age can access ...
Related Articles
  1. Financial Advisor

    3 Ways Retirees Can Generate Income from Investments

    It's not enough to have savings; those investments have to generate income to last through retirement. Here's how.
  2. Retirement

    6 Ways Retirees Can Capitalize on Higher Rates

    A interest rate increase still looks to be on the horizon, so retirees should begin rethinking the way they currently invest.
  3. Retirement

    3 Safer Income-Oriented Asset Classes for Retirees in 2016

    Learn why the chase for safe retirement income will continue in 2016 with market yields remaining low, even with the Fed's first tightening move in many years.
  4. Financial Advisor

    4 Mistakes to Avoid with Your Retirement Plan

    The retirement landscape is changing. Here are four things retirees today need to be wary — and aware — of when it comes to their investments.
  5. Retirement

    The Top 3 Retiree Worries (And What To Do About Them)

    Discover the most common problems retirees face, and what they can do to solve them.
  6. Financial Advisor

    Real Estate Advice for Recent Retirees

    What retirees need to consider when it come to making real estate decisions.
  7. Financial Advisor

    Is Annuitization Your Best Strategy?

    Annuitization has traditionally offered annuity owners a stream of income they cannot outlive, but there are some disadvantages to this form of payout. Consider alternatives, such as income-benefit ...
  8. Retirement

    Top 3 Health Insurance Options if You Retire Early

    Early retirees will need to maintain coverage until they become Medicare-eligible at age 65.
  9. Retirement

    4 Books Every Retiree Should Read

    Learn more about the current financial situations retirees are facing and discover four books that every prospective and current retiree must read.
RELATED FAQS
  1. For what types of investments is the payout ratio the most relevant?

    Find out about the payout ratio, what the payout ratio measures and the type of investment that the payout ratio is used ... Read Answer >>
  2. Are dividend payout ratios different in different economic sectors?

    Discover which economic sectors have traditionally higher or lower dividend payout ratios and the various factors that determine ... Read Answer >>
  3. What does a sample plan using the 4% retirement rule look like?

    Discover how the 4% retirement rule can work as part of a plan to achieve increasing retirement income if investments perform ... Read Answer >>
  4. What is the difference between dividend yield and dividend payout ratio?

    Understand the difference between the dividend yield and the dividend payout ratio, two basic investment valuation measures ... Read Answer >>
Hot Definitions
  1. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  2. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  5. Zero Day Attack

    Zero Day Attack is an attack that exploits a potentially serious software security weakness that the vendor or developer ...
  6. Effective Tax Rate

    The average rate at which an individual or corporation is taxed. The effective tax rate for individuals is the average rate ...
Trading Center