Joint And Survivor Option

What Does Joint And Survivor Option Mean?

A joint and survivor option is a type of annuity that provides coverage for two or more people, paying an income until the death of the last surviving annuitant.

These annuities are often purchased by married couples who wish to ensure a continuing income for the surviving spouse after one partner’s death.

Insuranceopedia Explains Joint And Survivor Option

A single annuity provides regular payments after retirement to a single annuitant, whereas a joint and survivor annuity pays benefits to two or more annuitants. Joint and survivor options are one of several payout structures available with annuity products, each with different trade-offs between monthly payment size and how long income continues.

Unlike a life insurance death benefit, a joint and survivor annuity does not require an annuitant’s death before paying benefits. Annuitants can receive income while both are alive, and after one spouse’s death, the surviving spouse continues to collect benefits, though often at a reduced amount. Couples weighing this option often compare the income trade-off against other coverage they already hold, since life insurance for seniors can also provide financial support after a spouse dies.

Employers offering annuity programs are required to provide this type of annuity to married employees unless a spouse officially waives it in writing.