Define: Joint Life Annuity

Business, Legal & Accounting Glossary

Definition: Joint Life Annuity



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Full Definition of Joint Life Annuity


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.


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Definition Sources


Definitions for Joint Life Annuity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020