Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Life Insurance and AnnuitiesEasy
A Florida agent is explaining the benefits of an annuity to a prospective client. The client is interested in an annuity that will provide income for two individuals, and the payments will continue as long as either annuitant is alive. Which type of annuity best fits this description?
- AFixed Period Annuity
- BLife with Period Certain Annuity
- CJoint and Last Survivor Annuity
- DStraight Life Annuity
Show answer & explanationAnswer & explanation
Correct answer: C. Joint and Last Survivor Annuity
A Joint and Last Survivor annuity is designed to provide income payments for the lifetime of two or more annuitants, continuing as long as at least one of them is alive. This is ideal for couples.
Why the other options are wrong
- A. A Fixed Period Annuity pays for a set number of years, regardless of life expectancy.
- B. Life with Period Certain guarantees payments for a minimum period, then for the annuitant's life, but typically for one person.
- D. A Straight Life Annuity only pays for the lifetime of one annuitant.
Joint and Last Survivor Annuity
An annuity payout option that provides income payments for the lifetime of two or more annuitants, continuing as long as at least one of them is alive.
- Covers two or more lives
- Payments continue until the last annuitant dies
- Often chosen by married couples
- Payments are typically lower than single-life annuities
Memory trick: Joint and Last Survivor: Like a never-ending duet, as long as one singer is still on stage!