Survivorship Income Payments
Definition - What does Survivorship Income Payments mean?
Survivorship income payments are regular payouts given to the surviving annuitant in a joint life and survivorship annuity. As long as one annuitant is living, this type of plan continues paying regularly. Often, older couples purchase it to ensure the surviving partner can keep receiving some regular income for life.
Insuranceopedia explains Survivorship Income Payments
Generally, people purchase annuities to as a means of steady cash flow during retirement. Unlike other options, a joint life and survivorship annuity continues payments for life and thereby ensures the surviving partner does not outlive the payments. However, depending on the type of plan, income payments decrease by a set amount after one of the annuitant passes.