Annuities are basically contracts bought with a specific sum of money from Annuity Company that will make payments of a certain amount of money for a pre-decided period of time or for the entire lifetime of an annuitant. Last survivor annuity is that type of annuity which pays out for lifetimes of both the primary annuitant and the joint annuitant or surviving annuitant.
Annuities are like loans in reverse; an amount of money is given for purchase of the annuity and that amount is paid back with interests over time.
How Last Survivor Annuity Works
An annuitant can buy annuities which payout a specific amount of money payments (decided by the sum used to buy the annuity) for the lifetime of the buyer. The annuitant is entitled to include a joint annuitant or a surviving annuitant onto his contract. Even if, there are some variations to the joint and survivor annuities; the last survivor annuity is a type of annuities that pays level payouts continually all through the rest lifetimes of the primary annuitant as well as the surviving annuitant.
Last survivor annuity is specifically designed to create regular and continual payments throughout the rest lifetimes of both the primary annuitant and his or her designated surviving or joint annuitant. It means, if the primary annuitant dies, equal payments will be still made to the joint or surviving annuitant till his or her death. Payments made under a last survivor annuity generally do not get decreased over time even after death of primary annuitant.