Tennessee Life Producer Practice Exam

What is the primary advantage of a Single Premium Immediate Joint with Survivor Annuity?

1. Immediate cash value access

2. Lifetime income for both spouses

3. Lower premium costs

4. One-time payout at death

The correct answer is: Lifetime income for both spouses

The primary advantage of a Single Premium Immediate Joint with Survivor Annuity is that it provides lifetime income for both spouses. This type of annuity is designed to ensure that both individuals will continue to receive regular payments for as long as either one of them is alive. As such, it offers financial security and predictability, making it an ideal option for couples looking to supplement their retirement income or ensure that their needs are met throughout their lives. By selecting this type of annuity, the couple can also avoid the potential financial strain that might come from one partner outliving the other, as the annuity guarantees that the surviving spouse will continue to receive payments. This feature is particularly appealing in the context of retirement planning, where longevity risk may be a concern. Other options may imply certain benefits, such as immediate cash access or cost efficiency, but they do not capture the essence of what makes the joint survivor annuity particularly valuable for couples: the assurance of continued income for both partners regardless of who passes away first.