Joint and Survivor Annuity

A joint and survivor annuity is a type of annuity that provides income to two or more people for their joint lives. After the first person dies, the survivor continues to receive payments for the rest of their life.

There are two main types of joint and survivor annuities:

• Fixed joint and survivor annuities pay a fixed amount of money each month for the joint lives of the annuitants. The amount of the payment is determined by the annuitant's age, gender, and the interest rate at the time the annuity is purchased.
• Variable joint and survivor annuities pay a variable amount of money each month based on the performance of an underlying investment portfolio. The amount of the payment can increase or decrease over time, depending on the performance of the portfolio.

Joint and survivor annuities can be a good option for couples who want to ensure that their loved ones are financially secure after they die. However, it is important to understand the pros and cons of this type of annuity before you make a decision.

Pros of joint and survivor annuities:

• They provide a guaranteed income for the joint lives of the annuitants.
• The survivor continues to receive payments after the first person dies.
• They can be a good way to provide for a loved one who is financially dependent on you.

Cons of joint and survivor annuities:

• The payments are typically lower than those of single life annuities.
• The survivor may outlive the annuity and not receive any payments.
• The annuity may be subject to income taxes.

If you are considering a joint and survivor annuity, it is important to speak with a financial advisor to weigh the pros and cons and make sure that this type of annuity is right for you.