Retirement Income
An income rider is a critical consideration. It allows you to choose insurance for the husband and/or the wife (some carriers will insurance both partners). Remember, the reason you would buy this would be for retirement. Consequently, it is the best time to buy a joint and survivor annuity.
Buying A Joint & Survivor Annuity
Annuity payments are received over one’s lifetime and another individual’s lifetime. The annuity issuer promises to pay an amount on a periodic basis (monthly, quarterly, or yearly). The amount received for each payment period will be the same while at least one person is alive. If it is a husband and wife and the husband passes away, for example, than the wife continues to get the same income stream.
Doing your annuity homework? Start with our free comparison guide and the 7 questions to ask any advisor. Ready for real numbers? Talk to a licensed advisor in your state — we serve all 50 states.
How Survivor Benefit Percentages Affect Your Monthly Payment
When structuring a joint and survivor annuity, one of the most important decisions you will make is selecting the survivor benefit percentage. Common options include 100%, 75%, and 50% survivor benefits. A 100% option means the surviving spouse receives the full original payment amount for the rest of their life. A 75% or 50% option reduces the survivor’s payment but typically results in a higher initial monthly income while both spouses are living. Couples should weigh their individual health histories and projected longevity carefully before locking in this election.
It is also worth understanding how a joint and survivor annuity compares to a single-life annuity. A single-life annuity pays a higher monthly amount but stops entirely at the annuitant’s death, leaving a surviving spouse with no income from that contract. For couples who depend heavily on annuity income to cover essential expenses like housing and healthcare, the reduced but continuous payment of a joint and survivor structure often provides greater financial security.
Tennessee residents should also be aware that annuity contract terms vary significantly between insurance carriers. Payout rates, financial strength ratings, and available riders — such as cost-of-living adjustments — can meaningfully impact long-term income. Comparing multiple carriers before purchasing is strongly recommended to ensure both spouses are adequately protected throughout retirement.