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.
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joint life annuity

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Joint annuities are available, so a married couple might get this payout as long as either spouse is alive.
Chapters coauthored with Jeffrey Brown and with Tomeka Hill present a broad introduction to annuities and summarize the potential uses of variable annuities, inflation-indexed annuities, and joint annuities to mitigate inflation, market timing, and survivor risk.
"Yet the difference between single and joint annuities can be just a few hundred pounds a year."
There are several types of annuity available, including those that pay out a fixed rate for life, those that are linked to the rate of inflation, those that start lower but increase over time, joint annuities that provide for your spouse/partner on your death and, of course, the enhanced annuities mentioned above.
(Joint annuities have lower payouts than single life annuities.)
Joint annuities accounted for 11 percent of SPIA premium payments, with 7 percent of such payments for joint life annuities with a "period certain" payout, while roughly one-third of SPIA premiums were devoted to single life annuities.
Because the authors do not have a solid basis for specifying such consumption needs, most of their analysis focuses on last survivor joint annuities.
Although joint annuities represent a small fraction of the single premium individual annuity market, they represent a substantial fraction of the annuities written in conjunction with the group annuity policies that are associated with private defined benefit pension plans.

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