Annuity Ratchet? with 20 Characters

Talking with a guy, age 63, wife, 58 weighing buyout option.

$3400 for life (annuity) or $740k lump sum

How much is the annuity costing you?

Nothing. We get $3400 for life. When one of us dies the annuity payout ratchets up to a single life payout.

Really?

Not familiar with this type.

Survivor annuities I have seen either drop or, if a period certain, remains level until the period runs out.
Source of insurance-forums.net

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