What annuity settlement option guarantees a monthly amount to the annuitant and a survivor after the annuitant's death?

The joint and survivorship option is designed to ensure that the annuitant receives a guaranteed monthly payment during their lifetime, and in the event of their death, a specified survivor (often a spouse or partner) continues to receive payments for their lifetime as well. This feature provides a layer of financial security, allowing both individuals to benefit from the annuity during their lives, ensuring that the surviving party does not experience a loss of income after the annuitant passes away.

This option is particularly appealing for couples who want to maintain financial stability for the surviving partner. The payments may reduce after the first death, depending on the terms of the contract, but the key aspect is that the survivor is guaranteed payments, alleviating concerns about financial hardship following the annuitant’s death.

In contrast, the life only option pays until the annuitant’s death without extending benefits to a survivor. The fixed period option provides payments for a predetermined duration regardless of the annuitant's death, and the single sum option does not provide a monthly income but rather a lump sum payment.