Which of the following is a characteristic of a Joint and Survivor Annuity?

A Joint and Survivor Annuity is designed to provide ongoing payments to two individuals, typically spouses, for their lifetimes. This means that as long as at least one of the two people is alive, the annuity continues to make payments. If one spouse passes away, the surviving spouse will continue to receive payments, which can be at the same amount or a reduced amount, depending on the specific terms of the annuity contract.

This characteristic ensures financial security for both individuals involved, making the Joint and Survivor Annuity particularly valuable for couples who wish to guarantee that one partner will always have income, even after the other has died. This arrangement contrasts with other options that might only provide benefits to the first individual to die, limiting the survivor’s financial protection.

The other choices do not accurately capture the defining feature of a Joint and Survivor Annuity, as they focus on elements such as single-life payments, lump-sum distributions, or fixed payment amounts, which do not encompass the unique dual protection aspect inherent to this type of annuity.