Joint And Survivor Option

What Does Joint And Survivor Option Mean?

A joint and survivor option is a type of annuity that covers two or more people. It pays an annuity until the death of the last surviving annuitant.

Joint and survivor option annuities are usually purchased by married couples who want to ensure a continuing income for the surviving spouse after the death of their partner.

Insuranceopedia Explains Joint And Survivor Option

While a single annuity provides regular funds after retirement for a single annuitant, a joint and survivor option pays two or more annuitants.

Unlike a death benefit from a life insurance policy, a joint and survivor annuity does not require one of the insureds to die before paying a benefit. Annuitants can collect on their joint and survivor option while they're alive, and when one spouse dies, the surviving spouse can continue to collect benefits. When one of the annuitants dies, however, the survivor may receive a decreased benefit.

Employers who provide annuity programs are required to offer this annuity to its married employees unless a partner officially declines through a written document.