Last Survivor Annuity

Last Survivor Annuity

An annuity between two or more persons in which benefits increase for surviving members as the annuitants die. For example, if there are two persons in a last survivor annuity, each receiving $500 per month, and one of them dies, the remaining annuitant receives $1,000 per month. Payments stop after the last annuitant finally passes away. A last survivor annuity is also called a tontine annuity.
References in periodicals archive ?
If [theta] = 1, then the contingent survivor annuity is equivalent to a last survivor annuity with [theta] = 1, but when [theta] [less than] 1, the policy differs from a last survivor policy with [theta] [less than] 1.
The joint and last survivor annuity is a special case of a broad class of joint-life annuities.