When considering what sort of life annuity to buy, people often stop and consider how long a guarantee they should take, or even if they should take one at all.
But there is another important question which is not always discussed and that is whether both parties should choose to be annuitants.
Let us consider the case where the male spouse is 68 and the female spouse is 63, both in good health. Thee female spouse is 5 years younger and statistically will live 7+ years longer, a difference of some 12 years. If they take a joint annuity, the same payment will be received by either party until the second death . But that means in all likelihood the female spouse will have less and less spending power if inflation takes a hold. On the other hand, only one person has to live on the value of the money.
Perhaps the answer lies in the age difference or the extent of which the life annuity income depends. If there is a sufficient capital they should choose two single life annuities with the longest possible guarantee which may well be the answer. Food for thought.