What is a Joint Life with Last Survivor Annuity?

Joint life with Last Survivor annuity is an insurance plan that allows the beneficiaries (annuitants) to receive contractual payments. If one beneficiary passes away, the second covered beneficiary receives payments until death. This type of insurance plan always requires two or more annuitants (usually married couples). 

How Does a Joint Life with Last Survivor Annuity Work?

Just like any other annuity, which entails lifetime periodic (generally monthly payments, the joint and survivor annuity is also a lifetime payment instrument. Spouses can decide on terms before the annuity payment starts, but these terms will not stop payment from rolling in until both partners die..Monthly payments in a joint and survivor annuity are dependent on the options set by the insurance company or the terms agreed on by the insured. If the terms of the annuity states that 50 percent of payments should be made to the beneficiary; when a partner dies, the payment will be reduced to 50 percent. But in the case of a 100 percent joint and survivor annuity, the same amount or initial payment will continue until the second partner also dies.It is important to remember that an annuity is a type of insurance plan designed by insurers. A joint and survivor annuity requires that you pay the value of the policy or contract. It can also be a lump sum payment or a series of payments to the insurance company. Once this payment is made, and the contractual stipulations are met, the annuity beneficiaries begin to receive regular disbursements every payment period.