Joint Life with Last Survivor Annuity
An insurance product that, when annuitized, makes payments to the annuitant, the annuitant and his/her spouse, or the annuitant and another beneficial party until both the annuitant and his/her spouse have passed away. These annuities are not term certain, so they continue paying out to the annuitant, and whoever he or she designates to receive payments, until the death of the annuitant and the designated third party. The annuitant may also designate a beneficiary, who can, but doesn't have to be the same person as the designated third party.
Investopedia Commentary
These insurance products are an excellent way for an annuitant to provide for him/herself and his/her spouse until the annuitant's death and to provide for the spouse and the beneficiary following the annuitant's death. Annuitants may elect to have their spouse and beneficiary receive reduced payments after their death, so as to maximize the amount of money that will be transferred to the death benefit of the policy.
Related Links
An Overview Of Annuities
Selecting The Payout On Your Annuity
Exploring Types Of Fixed Annuities
Buying Life Insurance: Term Versus Permanent
See also: Annuitant, Annuitization Phase, Annuity, Beneficiary, Death Benefit, Life Annuity, Period Certain
Also spelled: joint and survivor annuity