Which payout option guarantees income for two recipients and continues after the death of one?

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Multiple Choice

Which payout option guarantees income for two recipients and continues after the death of one?

Payout options for lifetime income hinge on who gets paid and for how long. The arrangement that guarantees income for two people and continues after one dies is the joint and survivor arrangement. It is set up for two lives to receive payments, and when the first person dies, the payments to the surviving person continue for life, usually at a reduced amount to reflect the loss of one life. This survivor feature is what makes it match the scenario described. Other options either end at the first death (payments stop when the first person dies), end with the death of the annuitant (no survivor income), or involve more than two lives, which isn’t the two-recipient case described.

Payout options for lifetime income hinge on who gets paid and for how long. The arrangement that guarantees income for two people and continues after one dies is the joint and survivor arrangement. It is set up for two lives to receive payments, and when the first person dies, the payments to the surviving person continue for life, usually at a reduced amount to reflect the loss of one life. This survivor feature is what makes it match the scenario described. Other options either end at the first death (payments stop when the first person dies), end with the death of the annuitant (no survivor income), or involve more than two lives, which isn’t the two-recipient case described.

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