Generally, most individuals will utilize the single life table, but the joint life annuity
tables are used if the individual's spouse is more than 10 years younger.
A When you purchase an annuity you are exchanging your pension fund for a guaranteed income for life for you and possibly your spouse or dependent if you took out a joint life annuity
. In April 2017, when the second-hand annuity market is launched, you could possibly sell your annuity in exchange for a lump sum.
Or perhaps you want to make some provision for your partner, in which case do you opt for a Joint Life annuity
that will continue to pay out after you've gone?
As a comparison, if you were to buy the maximum PS25 per week at age 65 you would be spending PS22,500 to get an extra PS1,300 per annum, which is double the amount from a comparable joint life annuity
with index linking and a 50 per cent spouses pension.
* You can acquire either a single life annuity (which provides life-long income for you alone) or a joint life annuity
(which provides annual income for as long as either you or your spouse/sibling are alive).
Many are attracted to them because they offer a higher rate than a joint life annuity
When you die, payments stop, unless you have chosen a joint life annuity
or a guaranteed payment period ?
Joint Life Annuity
for life (without any death benefit) - A fixed amount, guaranteed at the policy inception, will be paid as long as at least one of the annuitants is alive.
Based on their situation, we moved 30 percent of their assets into a guaranteed income product (a joint life annuity
with a 20-year period certain), effectively transferring the market risk on that money and the risk of outliving that money to the insurance company.
"Delaying the primary earner's benefit is equivalent to purchasing a second-to-die or joint life annuity
," the authors write.
A joint life annuity
provides for payments so long as both annuitants are alive.
Answer--A joint life annuity
is a contract that provides a specified amount of income for two or more persons named in the contract.