Last Survivor Annuity

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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 ?
This plan is not necessarily optimal within a classical life-cycle model with no bequest motives--in which continuously renegotiated tontine annuities are available--as originally demonstrated by Yaari (1965) and recently extended by Davidoff, Brown, and Diamond (2003).