Joint And Survivor Annuity

AAA

DEFINITION of 'Joint And Survivor Annuity'

An insurance product that continues regular payments as long as one of the annuitants is alive. A joint and survivor annuity must have two or more annuitants, and is often purchased by married couples who want to guarantee that a surviving spouse will receive regular income for life. Annuities are generally used to provide a steady income during retirement.

INVESTOPEDIA EXPLAINS 'Joint And Survivor Annuity'

Different types of joint and survivor annuities are available. For example, a joint and one-half annuity would reduce the payments to one-half of the original payment amount following the death of the first annuitant; and a joint and two-thirds annuity would reduce the payments to two-thirds the initial payment amount. A joint and survivor annuity is often appropriate for married couples who want to make sure the surviving spouse will continue to receive payments for life. This differs from other annuity products where it would be possible for a surviving spouse to outlive income payments.

RELATED TERMS
  1. Joint Account

    A bank or brokerage account that is shared between two or more ...
  2. Life Annuity

    An insurance product that features a predetermined periodic payout ...
  3. Annuity

    A financial product sold by financial institutions that is designed ...
  4. Joint Return

    A U.S. income tax return filed on behalf of a married couple, ...
  5. Joint Owned Property

    Any property held in the name of two or more parties. The two ...
  6. Jointly and Severally

    1. A legal term describing a partnership in which individual ...
Related Articles
  1. Calculating The Present And Future Value ...
    Investing Basics

    Calculating The Present And Future Value ...

  2. Passing The Buck: The Hidden Costs Of ...
    Bonds & Fixed Income

    Passing The Buck: The Hidden Costs Of ...

  3. The Tax Benefits Of Having A Spouse
    Taxes

    The Tax Benefits Of Having A Spouse

  4. Getting the Whole Story on Variable ...
    Options & Futures

    Getting the Whole Story on Variable ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center