Joint and Last Survivor Annuities
A joint and last survivor life annuity provides an income for the lifetime of 2 people. Payments continue until your death or the death of your co-annuitant (for example, your spouse), whichever occurs last. At that time, the beneficiary receives a lump-sum payment equal to the value of any remaining guaranteed benefit.
If you purchase a payout annuity with registered pension or locked-in RRSP funds and you have a spouse, you must purchase a joint and last survivor life annuity. In some cases, this requirement may be waived with the signed consent of your spouse.
Income Payment Options
Income continuing in full after first death
When you or your co-annuitant dies (whichever is first), payments continue for the lifetime of the remaining annuitant.
If all of the guaranteed payments have not been made when both of you die, the beneficiary receives a lump-sum payment equal to the value of the remaining benefit. If no named beneficiary exists, payment will be made to the estate.
Income reducing on the later of the first death or the end of the guaranteed period
When you or your co-annuitant dies during the guarantee period, payments continue in full until the end of the guarantee period. At that time, payments are reduced by a specified percentage (usually 50, 40 or 30%) and continue for the lifetime of the remaining annuitant.
If all of the guaranteed payments have not been made when both of you die, the beneficiary receives a lump-sum payment equal to the value of the remaining benefit. If no named beneficiary exists, payment will be made to the estate.
Income reducing on the later of the death of the primary annuitant or the end of the guaranteed period
When the primary annuitant dies during the guarantee period, payments continue in full until the end of the guarantee period. At that time, payments are reduced by a specified percentage (usually 50, 40 or 30%) and continue for the lifetime of the co-annuitant.
If all of the guaranteed payments have not been made when both of you die, the beneficiary receives a lump-sum payment equal to the value of the remaining benefit. If no named beneficiary exists, payment will be made to the estate.
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