Joint Life Annuity
What Does Joint Life Annuity Mean?
A joint life annuity is an annuity that continues to make payments 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 provide a fixed income during retirement. If all the annuitants have long lives, the joint life annuity can continue to pay out for 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, the annuity may stop paying. This means the remaining annuitants would not receive as much money as they would if all designated annuitants had long lives. However, the benefit of joint life annuities is that they enhance a life insurance policy by using a portion of the premiums to cover more than just death benefits. As a result, the policyholder can secure a fixed income option alongside death benefits by choosing a policy with a joint life annuity option.
