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 ?
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.
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.
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.