California Life and Health Insurance Practice Exam 2026 – Complete Test Prep

A joint and survivor annuity is designed to provide income to two annuitants for their lifetimes. This type of annuity ensures that payments continue for as long as either of the two named individuals is alive. Upon the death of one annuitant, the surviving annuitant receives the benefit, which may vary based on the specific terms of the policy. This arrangement offers financial security for couples, as it guarantees that at least one person will continue to receive income without interruption.

In contrast, a single life annuity only pays income to one individual, ceasing after their death. Fixed annuities offer a predetermined amount of income, but they do not inherently include provisions for multiple annuitants. Variable annuities allow for payment amounts to fluctuate based on investment performance but are not specifically designed for two lives like a joint and survivor annuity. This highlights the unique purpose of the joint and survivor annuity in facilitating ongoing income for multiple individuals.