Joint-Life Payout

AAA

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.

INVESTOPEDIA EXPLAINS '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. IRA Plan

    A plan that individuals may establish to arrange and plan for ...
  2. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  3. Simplified Employee Pension - SEP ...

    A retirement plan that an employer or self-employed individuals ...
  4. Employer-Sponsored Plan

    A type of benefit plan that an employer offers for the benefit ...
  5. Case Management

    Planning, processing and monitoring the healthcare services given ...
  6. Convertible Insurance

    A type of life insurance that allows the policyholder to change ...
Related Articles
  1. Borrowing From Your Retirement Plan
    Retirement

    Borrowing From Your Retirement Plan

  2. Tax Tips For The Individual Investor
    Retirement

    Tax Tips For The Individual Investor

  3. Business Owners: Avoid Enron-esque Retirement ...
    Options & Futures

    Business Owners: Avoid Enron-esque Retirement ...

  4. Common Questions About Retirement Plans ...
    Taxes

    Common Questions About Retirement Plans ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center