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.