Joint And Survivor Annuity: What Is It? How Does It Work?

Shawn Plummer

CEO, The Annuity Expert

A joint and survivor annuity is a type of annuity that provides payments to two people. The payments usually continue until the death of the last person receiving them. This type of annuity can be an excellent option for couples who want to make sure that their loved ones are taken care of financially after they pass away. This guide will discuss the benefits of a joint and survivor annuity and how you can choose the right one for your needs!

What is a Joint And Survivor Annuity?

A joint and survivor annuity is a type of annuity that will provide payments to both an annuity owner and their spouse for the rest of their lives, even if the annuity runs out of money.

The monthly annuity payments continue until the second person dies, and it does not matter who dies first or second.

The Annuity For Spouses

Joint and survivor annuities can provide a number of benefits for couples. One of the most significant advantages is that they can help to ensure that your loved one is taken care of financially after you pass away. This type of annuity can also provide peace of mind knowing that your family will have one less thing to worry about during an already difficult time.

If you consider purchasing a joint and survivor annuity, there are a few things to keep in mind. First, you will need to decide how long you want the payments to continue. This will usually be based on the life expectancy of the younger person in the couple. You will also need to choose how much you want to pay each month. Keep in mind that the higher the payments, the lower the overall payout.

Lastly, you will need to decide what type of joint and survivor annuity is right. There are two main types: fixed annuities and variable annuities. Fixed annuities provide a guaranteed monthly payment for the duration of the contract. On the other hand, variable annuities offer payments that can fluctuate based on the performance of the underlying investment.

No matter which type of joint and survivor annuity you choose, it is essential to shop around and compare different options before deciding. Be sure to contact us to get help finding the right annuity for your needs.

100% Joint and Survivor Annuity Payments

A 100 percent joint and survivor annuity pays the same monthly amount until the second person dies. After that, the surviving spouse’s monthly payment from a 100% joint and survivor annuity will equal 100% of the original annuity payments and not reduce.

When both spouses die, the annuity payments stop, and there is no death benefit for beneficiaries.

75% Joint and Survivor Annuity Payments

Seventy-five percent joint and survivor annuity mean that a benefit will be paid in equal monthly installments to the primary annuitant who has the annuity for their life. After an annuitant dies, three-quarters (3/4) of the original benefit will continue to be paid to a surviving annuitant.

50% Joint and Survivor Annuity Payments

Fifty percent joint and survivor annuity mean that a benefit will be paid in equal monthly installments to the primary annuitant who has the annuity for their life. After an annuitant dies, half (1/2) of the original benefit will continue to be paid to a surviving annuitant.

Joint and Survivor Annuities

Research annuities designed for spouses, then request a quote.

Conclusion

If you are looking for a way to ensure that your loved one is taken care of financially after you pass away, a joint and survivor annuity may be the right option for you. This type of annuity can provide peace of mind during an already difficult time and help to ensure that your family doesn’t have to worry about finances as they mourn your loss. Click below for a free quote and learn more about how this annuity could benefit you and your loved ones.

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Frequently Asked Questions

What is a joint and survivor annuity?

A joint and survivor annuity is an insurance policy that pays out an income to two people, typically a married couple, during their retirement years. The payments continue until both individuals have passed away. This type of annuity can provide financial security and peace of mind knowing that your spouse will still have an income even if you die first.

What is the difference between a joint annuity and a joint and survivor annuity?

With a joint annuity, payments stop when one spouse dies. However, payments continue with a joint and survivor annuity until both spouses have passed away. This can provide peace of mind and financial security, knowing that your spouse will still have an income even if you die first.

What is a 50 percent joint and survivor annuity?

A 50 percent joint and survivor annuity is an insurance policy that pays out an income to two people, typically a married couple, during their retirement years. The payments continue until both individuals have passed away. The payments will be reduced by 50 percent when the first spouse dies.

What is a 100 percent joint and survivor annuity?

A 100 percent joint and survivor annuity is an insurance policy that pays out an income to two people, typically a married couple, during their retirement years. The payments continue until both individuals have passed away. The payments will not be reduced when the first spouse dies.

What is a survivor annuity benefit?

A survivor annuity benefit is an insurance policy that pays out an income to two people, typically a married couple, during their retirement years. The payments continue until both individuals have passed away. The payments will be reduced by the first spouse’s benefit percentage when the first spouse dies.

What is 75% joint and survivor annuity?

A 75% joint and survivor annuity is an insurance policy that pays out an income to two people, typically a married couple, during their retirement years. The payments continue until both individuals have passed away. The payments will be reduced by 75 percent when the first spouse dies.

How is survivor annuity calculated?

The survivor annuity is calculated by taking the amount of the original annuity and multiplying it by the survivor benefit percentage. The insurance company determines the survivor benefit percentage.

Is a joint and survivor annuity taxable?

Yes, a joint and survivor annuity is taxable.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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