What type of annuity provides a set amount of income for two or more persons, ceasing upon the first death?

A joint life annuity is specifically designed to provide a guaranteed income stream for two or more individuals. This type of annuity continues to pay out as long as at least one of the individuals is still alive. The payments cease upon the death of the first person, which distinguishes it from other annuity types.

The primary purpose of a joint life annuity is to ensure that both individuals have a shared income resource during their lifetimes, offering financial security for couples or partners. This setup can be particularly beneficial in situations where one partner may outlive the other, ensuring that the survivor continues to receive income without interruption until they also pass away.

In contrast, other options such as a single life annuity provide payment only for one individual’s lifetime, while variable annuities involve fluctuating income based on investment performance. Deferred annuities focus on accumulating funds for a future payout, rather than providing immediate income for two individuals as the joint life annuity does.