What is the feature of a joint and survivor annuity?

In a joint and survivor annuity, the feature that sets it apart is that payments continue to the surviving annuitant after the first owner passes away. This ensures that the surviving spouse or partner continues to receive income for the duration of their life, which can provide financial stability and security. The structure of this annuity is designed specifically to address the needs of couples by providing a reliable stream of income that lasts beyond the death of one party.

The other options do not accurately describe the key aspects of a joint and survivor annuity. One option states that payments are completely stopped after the first death, which contradicts the primary purpose of this type of annuity. Another suggests that payments increase after one owner dies; however, joint and survivor annuities typically maintain the same payment amounts or sometimes reduce slightly after the first death, rather than increasing. Lastly, while equal payments may be standard for the initial joint disbursement, the provision of equal payments doesn't effectively account for any age differences or changing needs after the death of one annuitant, which is not a defining characteristic of joint and survivor annuities.