Legal Definitions - joint annuity

A joint annuity is a type of annuity that is payable to two annuitants until one of them dies, at which time the annuity terminates for the survivor (unless the annuity also provides for survivorship rights).

For example, John and Jane purchase a joint annuity. The annuity pays them both a fixed amount each month. When one of them dies, the annuity payments stop for the survivor. If John dies first, Jane will no longer receive payments from the annuity.

Joint annuities are often used by couples who want to ensure that the surviving spouse will continue to receive income after one of them dies.