Joint Term Annuities

The term “joint term annuity” isn’t a commonly used term in the annuity world. There might be some confusion between two different types of annuities:

Joint Life Annuity:

This is the most likely option you’re looking for. As explained earlier, a joint life annuity provides income for as long as one spouse is alive. It focuses on survivor benefits, ensuring some income for the surviving spouse after one passes away.

Term Certain Annuity with Joint Annuitants:

This is a less common option but might be closer to what you're thinking of.

Term Certain Annuity:

This annuity guarantees income payments for a set period you choose upfront (e.g., 10 or 20 years). Unlike a life annuity, payments stop after the chosen term ends, regardless of whether you or your spouse are alive.

Joint Annuitants:

This means both you and your spouse are named as beneficiaries on the annuity. You can choose to receive the payments jointly (split the payout) or have them paid out to one person first and then the other (sequentially).

Key Differences:

Focus:

A joint life annuity focuses on survivor income, while a term certain annuity with joint annuitants focuses on income for a specific period, regardless of who is alive.