Definition

Noun: 1. A financial contract providing income to a beneficiary: A survivorship annuity is a type of annuity contract designed to provide a stream of income payments to a designated beneficiary (the survivor) after the death of the primary annuitant. It ensures financial support continues for a surviving spouse or dependent.

Usage

A survivorship annuity is used in estate and retirement planning to guarantee that a spouse or other beneficiary continues to receive income after the contract holder's death. The payments to the survivor typically begin only after the first annuitant passes away.

Examples

• The couple purchased a survivorship annuity to ensure the surviving spouse would have a steady income.
• A survivorship annuity can be a key component of a long-term financial plan for families.
• The policy was a survivorship annuity, naming her daughter as the beneficiary.

Advanced Usage

• "Joint and survivor annuity": This is a common specific type of survivorship annuity, often provided by pension plans, where payments continue to a surviving spouse for life after the retiree's death.
• The term is frequently used in legal, financial, and insurance contexts concerning inheritance, pension benefits, and long-term care planning.

Variants and Related Words

• Annuity (n): A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.
• Beneficiary (n): The person who receives money or other benefits from an insurance policy, will, or annuity.
• Contingent annuity (n): An annuity that begins payments upon the occurrence of a specific event, such as the death of another person; a survivorship annuity is a form of contingent annuity.

Synonyms

• Survivor annuity
• Reversionary annuity (in some legal/financial contexts)

Notes

This term does not commonly form phrasal verbs or idioms. Its usage is specific to the fields of finance and law.

Noun

1. an annuity payable to one person in the event that someone else is unable to receive it