Joint Annuity

What Does Joint Annuity Mean?

A joint annuity is an annuity purchased by two people, often a married couple, who receive payments from it until one of them passes away.

Many life insurance companies offer joint annuities as part of their product offerings. Couples nearing retirement often buy these products from the same insurers ranked among the best life insurance companies for seniors.

Insuranceopedia Explains Joint Annuity

Joint annuities are a good option for generating a fixed income during retirement. However, because payments stop upon the death of one annuitant, they carry a risk not present in many other annuity options. Couples weighing this against a single-life payout can find more detail on how annuities work before deciding.

Although the surviving annuitant will no longer receive annuity payments after the other annuitant’s death, they are likely to receive death benefits if the joint annuity was purchased through a life insurance policy.