A joint and survivor annuity, also referred to as a "joint and last survivor annuity
," provides for benefit payments while either of two individuals is alive.
Question--What is the difference between a joint annuity and a joint and last survivor annuity
So there are basically two types of private annuities: (1) the single life annuity under which payments cease at the death of the annuitant; and (2) the joint and last survivor annuity
, in which payments continue until the death of the last survivor, e.g., payments continue as long as either the husband or wife is alive.
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.
If married, assume the spouse is 50 years of age and the taxpayer wants to utilize a last survivor annuity
or simply a two-lives expected return multiple.
The joint and last survivor annuity
is a special case of a broad class of joint-life annuities.