Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Life Insurance and AnnuitiesHard
A Florida couple purchased a joint life annuity. The contract specifies that payments will continue as long as at least one of the annuitants is alive. This type of payout option is known as:
- AFixed Amount Installment
- BLife Income with Period Certain
- CJoint and Last Survivor Annuity
- DJoint Life Annuity
Show answer & explanationAnswer & explanation
Correct answer: C. Joint and Last Survivor Annuity
A Joint and Last Survivor Annuity ensures that income payments continue for as long as either of the two annuitants is alive, often with a reduced payment to the survivor. A 'Joint Life Annuity' (without 'Last Survivor') would cease payments upon the first death.
Why the other options are wrong
- A. This is a payment option where a fixed amount is paid until the funds are exhausted, not tied to the lives of annuitants.
- B. This option relates to a single annuitant and guarantees payments for a minimum period, not for two lives.
- D. A Joint Life Annuity (without 'Last Survivor') would cease payments upon the *first* death among the annuitants, which contradicts the scenario.
Joint and Last Survivor Annuity
An annuity payout option that provides income payments for the lifetime of two or more annuitants, continuing until the last annuitant dies.
- Covers two or more lives
- Payments continue as long as at least one annuitant is alive
- Often reduced payments to the survivor
Memory trick: Last Survivor: 'Til the last one stands, the payments land.