Survivorship Annuity

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Survivorship Annuity

An annuity that is paid to a beneficiary upon the death of the purchaser. That is, one purchases a survivorship annuity and designates a beneficiary. When the purchaser dies, the beneficiary receives a monthly payment for the remainder of his/her life. If the beneficiary dies before the purchaser, then the annuity contract is canceled. The purchaser may not change beneficiaries after the annuity is purchased. It is also called a reversionary annuity.
References in periodicals archive ?
If the premiums of the standard reversionary annuity are too high for the customer, the person can obtain a term version of the reversionary annuity at lower cost.
While guaranteed issue reversionary annuities do exist in today's market, there are more reversionary annuity options available today if the impaired risk can qualify for life insurance.
Comparing the death benefit of the reversionary annuity to a traditional life insurance policy depends upon the age of the beneficiary at the time of the insured's death.
The reversionary annuity guarantees the monthly income will commence to the surviving beneficiary irrespective of the date of the insured's death.
With a reversionary annuity, the retiree can have all three--enjoy an appreciated income stream, have much-needed flexibility, and potentially generate an attractive after-tax income to a surviving spouse.