What Does Joint Life Annuity Mean?
A joint life annuity is an annuity that continues to pay out until one of the annuitants dies. In the context of insurance, joint life annuities are commonly offered by life insurance companies as a way to generate a fixed income for retirement years. If all of the annuitants have long lives, then the joint life annuity can continue to pay for many, many years,
Insuranceopedia Explains Joint Life Annuity
The downside of a joint life annuity is that if one of the annuitants has a short life, or dies prematurely, then the annuity can stop paying. This means that the remaining annuitants would not receive as much money as they would if all designated annuitants had long lives. The benefit of joint life annuities is that they are a way to enhance a life insurance policy by using a portion of premiums to pay for more than just death benefits. So, the policyholder can get a fixed income option as well as death benefits if he or she chooses a policy with a joint life annuity option.