Massachusetts Life Producer Practice Exam

What is the primary benefit of a joint and survivor annuity for couples?

1. It pays out a higher initial income

2. It ensures income for the surviving spouse

3. It offers tax advantages over other annuities

4. It requires no premiums after the first payment

The correct answer is: It ensures income for the surviving spouse

The primary benefit of a joint and survivor annuity for couples is that it ensures income for the surviving spouse. This type of annuity is designed to provide continued financial support to one partner after the other has passed away. Essentially, it allows couples to receive income payments while both are alive, and then guarantees that the surviving spouse will continue to receive a portion of those payments for the rest of their life, even after the first partner dies. This structure offers peace of mind, as it helps couples manage financial planning for retirement by securing lifelong income, regardless of which partner outlives the other. With this arrangement, the couple can effectively plan for their long-term financial needs, knowing that the surviving spouse will not face a financial shortfall due to the loss of the other partner's income. Other options might address different aspects of annuities, but ensuring ongoing income for the surviving spouse is the hallmark benefit of joint and survivor annuities.