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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What are the best ways to sell an annuity?

    The best ways to sell an annuity are to locate buyers from insurance agents or companies that specialize in connecting buyers ... Read Full Answer >>
  2. How are non-qualified variable annuities taxed?

    Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure. After-tax money is deposited ... Read Full Answer >>
  3. Can a variable annuity be rolled into an IRA?

    You can roll qualified variable annuities, such as other qualified retirement plan accounts, into a traditional IRA. Non-qualified ... Read Full Answer >>
  4. Are variable annuities subject to required minimum distribution (RMD)?

    Variable annuities are insurance contracts that provide tax-deferred growth of assets that can later generate a guaranteed ... Read Full Answer >>
  5. What level of reserve ratios is typical for an insurance company to protect against ...

    In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... Read Full Answer >>
  6. What risks do I face when investing in the insurance sector?

    Like all equity investments, insurance companies present investors with market risk. Insurance companies, like banks, also ... Read Full Answer >>

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