survivorship annuity
Học thuậtThân thiện
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
- an annuity payable to one person in the event that someone else is unable to receive it