JLLs

JLLs, or Joint Life Annuities, are a type of insurance product that provides a stream of income for two individuals. Typically, this refers to a married couple, though other relationships can be designated. The annuity payments continue as long as at least one of the annuitants is alive. Once the second annuitant passes away, the annuity payments cease, and the contract typically terminates.

There are two main types of JLLs: JLL with return of premium and JLL without return of premium. In a JLL with return of premium, if both annuitants die before the total premiums paid have been returned through annuity payments, the remaining balance is paid to a designated beneficiary. In a JLL without return of premium, once the annuity payments stop upon the death of the second annuitant, there is no further payout, regardless of the total premiums paid.

JLLs are often used for retirement planning, providing a guaranteed income source that lasts for the lifetime of a couple. This can offer peace of mind, ensuring that at least one partner will continue to receive financial support after the other's death. The payout amount of a JLL is generally lower than that of a single-life annuity for the same premium, as the insurer anticipates making payments for a longer duration. The decision to purchase a JLL depends on individual financial circumstances, risk tolerance, and retirement goals.