What is a Joint Life Annuity designed to do?

A Joint Life Annuity is specifically designed to provide payouts for two lives. This type of annuity ensures that income will continue for both individuals until the second person passes away. The primary purpose of a Joint Life Annuity is to guarantee that both participants benefit from the financial support it offers, making it a suitable option for couples or partners who want to secure a steady income throughout their lifetimes. The structure of this financial product emphasizes the shared risk and collective benefit for both lives involved, providing ongoing financial reassurance until the last surviving individual dies.

The other options discuss features that are not intrinsic to the definition of a Joint Life Annuity. For example, offering refunds after the first death pertains more to some other annuity products that have a death benefit feature. Flexibility in payment amounts is not a hallmark of this annuity type, as the payments are generally fixed based on the terms set at the beginning. Ensuring payouts for only one life would contradict the fundamental feature of a Joint Life Annuity, which is designed to account for two individuals' lifetimes.