What is a joint and survivor life annuity?

A joint and survivor life annuity is designed to provide benefits to two individuals, typically a couple, for as long as either of them is alive. This type of annuity ensures that payments continue until both parties have passed away, which offers a measure of financial security for both individuals involved.

In a joint and survivor setup, the annuity generally pays a higher monthly benefit than a single life annuity, as the risk is spread over two lives rather than one. This arrangement is particularly advantageous for couples who wish to ensure that their surviving partner continues to receive income after one of them passes away, making it a practical choice for retirement planning.

The other options do not accurately describe this type of annuity. For instance, an annuity for a single beneficiary suggests payments only to one person without the survivor benefit. A single premium payment for life indicates a different mechanism focused on one-time payment rather than ongoing joint benefits. Lastly, a policy that requires joint ownership does not reflect the nature of how benefits are distributed in a joint and survivor life annuity.