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Simple English definitions for legal terms
continuing annuity
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A quick definition of continuing annuity:
A continuing annuity is a type of payment that is made regularly, usually monthly or annually, to a person. This payment stops when the person dies. It is often acquired through a life insurance contract and provides fixed payments for a specific period. There are different types of annuities, such as fixed annuity, variable annuity, and survivorship annuity. A survivorship annuity provides for continued payments to a survivor, usually a spouse, after the original annuitant dies.A more thorough explanation:
A continuing annuity is a type of annuity that provides for continued payments to a survivor, usually a spouse, after the original annuitant dies. It is also known as a survivorship annuity.
For example, if a husband and wife purchase a continuing annuity, the annuity payments will continue to be made to the surviving spouse after the husband passes away. This ensures that the surviving spouse will have a source of income even after the death of the primary annuitant.
Continuing annuities are commonly used in retirement planning to provide income for both spouses for the duration of their lifetimes. They offer a measure of financial security and peace of mind, knowing that the surviving spouse will be taken care of in the event of the other spouse's death.