What is a joint and survivor payout in a variable annuity?

• A. Payouts continue to a secondary person after the primary annuitant dies.
• B. Payouts stop after the first death.
• C. Payouts continue only if both parties survive.
• D. Payouts increase automatically after death.

Answer: (A)

Joint and survivor payout is a two-life payout option that guarantees income for two lives. The primary annuitant receives payments during life, and after the first person dies, the payments continue to the surviving partner. This provides ongoing retirement income for a spouse or another beneficiary, rather than stopping at the first death. The survivor’s continued payments are usually at the same level as the original amount or at a specified reduced percentage, depending on the contract. In contrast, a life-only payout stops after the first death, and some setups describe payments that continue only as long as both are alive or that change in other ways, but those aren’t the standard joint and survivor feature. In a variable annuity, the actual payment amount can vary with investment performance, but the defining idea remains: the income continues for a second person after the first death.