joint life annuity

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Joint Life Annuity

An annuity that two persons, almost always a married couple, open in order to provide for both in retirement. A joint life annuity makes payments to the designated party as long as one of the spouses remains alive. Depending on the nature of the agreement, the amount in the payments may decrease when the first spouse passes away. It is also called a joint and survivor annuity.

joint life annuity

References in periodicals archive ?
The tax rules will also be changed to allow joint life annuities to be passed on to any beneficiary.
Single life annuities stop paying upon death of the policy holder, whereas joint life annuities continue to be paid to a partner.
And only 4 per cent have talked with their partners about the difference between joint life and single life annuities - which stop paying when the purchaser dies - and joint life annuities which continue to pay after the death of one partner.
Kotlikoff and Spivak (1981) did not consider the demand for joint life annuities by married couples.
In spite of the importance of married individuals in the annuity-buying age range, joint life annuities currently represent a relatively small share of the SPIA market, although they account for a very large fraction of the annuities written in conjunction with defined benefit pension plans.
To explain further how joint life annuities allow a couple to provide for such state-contingent consumption, the authors now consider the two primary types of joint annuity contracts.
Joint life annuities play a potentially important role in completing the market for life-contingent claims.

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