Survivorship Income Payments

What Does Survivorship Income Payments Mean?

Survivorship income payments are regular disbursements made to the surviving annuitant in a joint life and survivorship annuity. This type of plan continues to provide regular payments as long as at least one annuitant is alive. It is commonly purchased by older couples to ensure the surviving partner receives a steady income for life. Because these annuities are often bought alongside life coverage for older couples, many buyers also compare life insurance options for seniors at the same time.

Insuranceopedia Explains Survivorship Income Payments

Generally, people purchase annuities as a means of securing a steady cash flow during retirement. Unlike other options, a joint life and survivorship annuity continues payments for life, ensuring the surviving partner does not outlive the income. However, depending on the plan type, income payments may decrease by a specified amount after one of the annuitants passes away. Survivorship income payments are one feature of a specific annuity contract, so it helps to know how annuities work in general before buying one.