Joint Life With Last Survivor Annuity

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DEFINITION of 'Joint Life With Last Survivor Annuity'

An insurance product that, when annuitized, makes payments to the annuitant, the annuitant and his/her spouse, or the annuitant and another beneficial party until both the annuitant and his/her spouse have passed away. These annuities are not term certain, so they continue paying out to the annuitant, and whoever he or she designates to receive payments, until the death of the annuitant and the designated third party. The annuitant may also designate a beneficiary, who can, but doesn't have to be the same person as the designated third party.

INVESTOPEDIA EXPLAINS 'Joint Life With Last Survivor Annuity'

These insurance products are an excellent way for an annuitant to provide for him/herself and his/her spouse until the annuitant's death and to provide for the spouse and the beneficiary following the annuitant's death. Annuitants may elect to have their spouse and beneficiary receive reduced payments after their death, so as to maximize the amount of money that will be transferred to the death benefit of the policy.

RELATED TERMS
  1. Annuity

    A financial product that pays out a fixed stream of payments ...
  2. Period Certain

    An annuitization-method option with which the annuitant selects ...
  3. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
  4. Annuitization Phase

    The period when the annuitant starts to receive payments from ...
  5. Annuitant

    1. A person who receives the benefits of an annuity or pension. ...
  6. Beneficiary

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