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

Shawn Plummer

CEO, The Annuity Expert

A joint and survivor annuity, also known as a joint life annuity, 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 ensure 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 an annuitization payout that guarantees payments for the lifetime of both the annuity owner and another person.

A joint and survivor annuity is a type of contingent annuity that will provide payments to both the 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.

What Is A Contingent Annuity?

Anyone who has purchased an annuity knows that one of the main advantages of this type of investment is the guaranteed income stream it provides. However, what happens to that income stream if the annuitant dies? This is where a contingent annuitant comes in.

The contract owner designates a contingent annuitant to receive the annuitant’s payments when they pass away. In other words, the payments do not stop until both the annuitant and the contingent annuitant have passed away.

This can provide peace of mind for the contract owner and the beneficiaries, as it ensures that the income stream will continue even if something happens to the original annuitant.

A Joint Life Annuity Is For Spouses

Joint and survivor annuities can provide several 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 are considering purchasing a joint and survivor annuity, there are a few things to keep in mind. First, you must 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. Remember that the higher the payments, the lower the overall payout.

Lastly, you must 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, shopping around and comparing different options is essential before deciding. Be sure to contact us to help find 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 beneficiaries have no death benefit.

75% Joint and Survivor Annuity Payments

Seventy-five percent joint and survivor annuity mean 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 means 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.

Next Steps

If you want to ensure that your loved one is taken care of financially after passing away, a joint and survivor annuity may be the right option. 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.

Joint And Survivor Annuity And Joint Life Annuity

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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. 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. The payments continue until both individuals have passed away. The first spouse’s benefit percentage will reduce the payments when the first spouse dies.

What is a 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 the 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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