contingent annuity

A contingent annuity is an annuity in which payments depend on the occurrence of a specified condition, such as the survival or death of an individual. They are commonly used in connection with life insurance and pensions to address longevity risk. A contingent annuity differs from a contingent annuitant, who is a secondary recipient of payments if the primary annuitant dies. A common form is the joint and survivor annuity, often purchased by spouses, in which payments continue to the surviving spouse after the death of the other. Once a contingent annuitant is designated, changing that designation may be difficult.

[Last reviewed in August of 2025 by the Wex Definitions Team] 

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