Joint Annuitant

What Does Joint Annuitant Mean?

A joint annuitant is a co-owner of an annuity intended for two people, typically a married couple. Payments from the annuity are designed to benefit both individuals. If one of them passes away, payments usually cease; however, if the plan includes a survivor clause, the surviving annuitant will continue to receive payments. Joint annuitant arrangements are one of several payout structures available when buying an annuity contract.

Insuranceopedia Explains Joint Annuitant

While joint annuities are commonly purchased by married couples, they can also be bought by three or more individuals, such as a married couple and an income-earning child. In a joint and survivor annuity, payments continue automatically to the surviving annuitant. If both annuitants pass away before receiving the full payout and the plan includes a refund clause, any remaining balance goes to a designated beneficiary. The general beneficiary rules and common mistakes that apply to life insurance also apply to whoever you name on a joint annuity’s refund clause. However, in a standard joint annuity without a survivor option, payments may stop if one annuitant dies. For this reason, workplace retirement plans often mandate a joint and survivor annuity to ensure the surviving spouse continues to receive income.