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A joint life annuity is an insurance policy or contract that pays a predetermined periodic benefit throughout the joint lifetime of two individuals. Typically, a joint life annuity is relevant to married couples, with the joint life annuity terminating upon the first death. Retirees often purchase joint life annuity policies to help them better budget their money and savings after retirement. Often annuitants pay into a joint life annuity on a periodic basis while still employed. Annuitants can also buy joint life annuity products as one large purchase. Due to the inherent tax benefits associated with joint life annuity policies, many high-net-worth individuals and wealthy investors use these products to transfer large sums of money or will use joint life annuity products to mitigate taxation on their income. Because of the complex nature of joint life annuity products, people are advised to consult a reputable insurance or legal professional before purchasing any joint life annuity policies. |
