What type of annuity pays income to two people until both pass away?

The correct answer is a joint and survivorship annuity, which is specifically designed to provide income payments to two individuals for as long as at least one of them is alive. This type of annuity continues to make payments until both individuals have passed away, ensuring financial support throughout their lifetimes.

In many cases, this arrangement is chosen by couples or partners who wish to ensure that they each have an ongoing income stream and that the surviving individual will continue to receive payments even after the first person dies. This can offer peace of mind and financial security for both parties, addressing the need for a continuous income after the loss of one partner.

While the other options may relate to different structures or variations of annuities, they do not correctly describe the payout conditions specified in the question. A joint annuity may imply payments to both parties but not necessarily until both have passed; a survivor annuity typically refers to arrangements that only continue after one individual has died and may not provide the same ongoing support during the lifetime of both. A last survivor annuity is also a term that can be used to describe the same concept as a joint and survivorship annuity, but it's less commonly used and might cause confusion regarding the exact terms of payment distribution during the