What Does Joint Annuitant Mean?
A joint annuitant is a co-owner of an annuity for two people, usually a married couple. Payment from the annuity is meant for both of them. When one of them dies, the payment usually ends. However, if there is a survivor clause in the plan, the surviving annuitant continues to receive payments from the plan.
Insuranceopedia Explains Joint Annuitant
While married couples usually buy a joint annuity, this can be bought by three or more people. Perhaps a married couple and an income-generating child might avail of this plan. In a joint and survivor annuity, payment continues automatically to the surviving annuitant. If both annuitants die and they were not paid in full and the plan they purchased has a refund clause, the remaining balance goes to a beneficiary. However, in an exclusive joint annuity, payment might stop if one annuitant dies. Thus, retirement plans in a workplace often insist on a joint and survivor annuity to make sure that a surviving spouse will receive an income.