Spousal continuation is a provision or planning strategy allowing a surviving spouse to continue an insurance or annuity contract after the first spouse's death, rather than having the contract terminate and pay proceeds immediately. In annuities, spousal continuation may allow the surviving spouse to step in as owner and continue tax deferral or lifetime income benefits. In life insurance, the term can describe designs where coverage or riders continue on the surviving spouse, sometimes using second-to-die or survivorship structures. Spousal continuation helps align product benefits with the reality that household financial needs often persist after the first death, especially in retirement income planning.

Advisors highlight spousal continuation features when designing retirement and estate programs for married couples. In deferred annuities, they explain that a designated spouse can assume ownership to avoid immediate taxation of death proceeds and keep living benefit riders in force. In life insurance, they may use survivorship designs or spousal riders to provide ongoing protection until the second death. Proper beneficiary and owner designations are critical to activating spousal continuation rights. Understanding spousal continuation helps advisors coordinate product elections, titling, and beneficiary planning so that surviving spouses are not forced into premature liquidations or unwanted tax events.