JOINT ANNUITY Meaning and
Definition
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A joint annuity is a financial arrangement where two or more individuals jointly receive regular income payments for a defined period, typically for the remainder of their lives. It is a type of annuity contract that offers guaranteed income to the annuitants, usually couples or partners, until the death of the last surviving individual.
With a joint annuity, both parties contribute a lump sum or make regular payments into the annuity account. The amount of income received is calculated based on factors such as the age, gender, and life expectancy of both individuals. Typically, the older the individuals are when they purchase the annuity, the higher the income payments.
One of the key features of a joint annuity is that if one of the annuitants passes away, the income payments continue to the surviving individual without any disruption. This provides a level of financial security for the surviving spouse or partner, ensuring they have a continued income source.
Joint annuities can be beneficial for couples or partners who rely on joint income for their living expenses or want to ensure financial stability for the survivor in the event of one's death. It provides peace of mind by offering a guaranteed income stream that cannot be outlived.
It is crucial to carefully consider the terms and conditions of a joint annuity before entering into the contract, as it may have implications for both individuals' financial situations and potential heirs. Seek advice from financial professionals or advisors to fully understand the implications and make informed decisions regarding joint annuities.
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One in which two or more persons participate and which is terminated by the death of any one of the annuitants.
A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.
Common Misspellings for JOINT ANNUITY
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Etymology of JOINT ANNUITY
The etymology of the word "joint annuity" can be understood by breaking down the origins of each term separately:
1. Joint: The term 'joint' comes from the Old French word 'joint', which means 'joined' or 'united'. It originated from the Latin word 'iunctus', the past participle of 'iungere', meaning 'to join' or 'to connect'. In the context of a joint annuity, it refers to an annuity that is owned or shared by two or more individuals.
2. Annuity: The term 'annuity' has its roots in the Latin word 'annus', meaning 'year'. In medieval Latin, 'annuitas' developed, referring to 'a sum of money payable yearly'. It later evolved into the Old French term 'annuité' and eventually entered English as 'annuity'.
