In a joint life annuity, what typically happens when the first party dies?

In a joint life annuity, the structure of the payments is designed to provide income to two individuals for as long as at least one of them is alive. When the first party dies, the joint life annuity typically stipulates that payments continue to the surviving party until their death. This means that the annuity's purpose is fulfilled by providing ongoing income for the surviving individual, addressing financial needs that may arise after the death of the first party. Therefore, the answer regarding the cessation of payments when the first party dies is not valid.

In essence, the joint life annuity ensures financial security for both parties involved, and payments continue uninterrupted until only one party remains. This feature underlines the importance of understanding how joint life annuities function within the realm of life insurance and retirement planning.