If asked about an annuity that pays to two people but ceases after the first death, what type of annuity would you describe?

A joint life annuity is designed to provide payments to two individuals for as long as at least one of them is alive. In the scenario described, the payments continue until the first person dies, at which point the annuity ceases, leading to a specific feature of this type of annuity. This structure ensures that the surviving individual receives payments for their lifetime, but if the first person passes away, the other individual would no longer receive any payments.

In contrast, a term certain annuity specifies a set period during which payments are made, regardless of whether the individuals are alive, while a straight life annuity provides payments to one individual for their lifetime with no consideration for another party. A survivorship annuity often refers to the continuation of payments to a survivor but typically implies ongoing payments after the first death, which does not align with the described cessation of payments. Thus, a joint life annuity is the correct type of annuity for the situation presented.