how joint life payouts work
with a joint life payout product a pension or other retirement plan will first pay benefits to the account holder at the account holder s death payments continue for another named person usually their spouse since the pension will likely pay benefits for a longer period of time under a joint life option the amounts disbursed will be lower than the account holder would have received had they elected a single life payout however the account holder has the assurance that their spouse will still have money coming in after they die in some instances the designated survivor can be someone other than a spouse the plan may also allow multiple beneficiaries however if you are married and your spouse is not the primary beneficiary of at least 50 of the assets the spouse must consent in writing that another party will be the beneficiary similarly if you marry after establishing the joint life payout plan your spouse will receive 50 of the payout unless they consent to leave the current arrangement unchanged 1you could also buy your own joint and survivor annuity this insurance contract provides guaranteed income payments as long as either the account holder or the beneficiary remains alive the account holder deposits a large amount of cash with the annuity provider when the contract is signed so they do incur high up front costs predictable payments begin between 30 days and one year after establishing the annuity contract and continue during both parties lifetimes 2