Impaired Life Annuity
What Does Impaired Life Annuity Mean?
An impaired life annuity is a retirement program for people who have serious health issues such as heart disease, diabetes or certain cancers. The payments received from this type of annuity are higher than for a regular annuity since it does not need to be paid for as many years.
Insuranceopedia Explains Impaired Life Annuity
Because an impaired life annuity is for those who have major health problems, the insurance companies who offer them tend to pay more for the periodic income not just because of the money needed for health maintenance, but also because of the short life expectancy among those who purchase this type of annuity. Impaired life annuities are typically available for people whose life expectancy is less than five years. Those who want to get impaired life annuity must disclose health details during the application.