Did you know that should your health profile be less than stellar, you can actually get more annuity income? Indeed, while strange as this may sound, you will find there's type of annuity that does this although rarely mentioned by annuity agents.
For decades now, immediate annuities income have served retirees with a life long fixed income; and they continue to grow in popularity as the number of retirees increase. All you need to do is choose the 'life' option, and you secure a new life-long income; almost like an additional social security check. The amount of your annuity income is offered by the insurance company in return for a single deposit. Different annuity companies will offer different amounts so shop for the best annuity rates. This is done by taking into account factors such as life expectancy for your age, gender and prevailing interest rates. The annuity income offered to you remains fixed, irrespective of how long you actually live.
Now, here's how your medical profile can affect the annuity income that you receive. Some insurance companies take into account your individual health history, in addition to the factors mentioned above. Some illnesses are viewed to reduce life expectancy, and this will increase the immediate annuity income (the shorter the measured life expectancy, the higher the annuity income). If you suffer from health conditions affecting life expectancy, you will receive greater monthly payments. Needless to say, with a little attention and discipline, many people suffering from life-threatening ailments may live long. You can do the same and receive increased, annuity income checks - irrespective of the length of time you live.
Here's an example, just to illustrate how a negative medical profile increases annuity income.
At the chronological age of 65, Mr. Green opts for a single premium immediate annuity with lifetime annuity income. For a down payment of $150,00o, the insurance company can pay him $884 each month. This fixed income will certainly reach his bank account, regardless of how long he lives. But Mr. Green learns about the medically-underwritten immediate annuity and also applies to a company which offers that product. Mr. Green's medical profile is not so great, and the insurance company believes that his health gives him the sane life expectancy of a 75-year-old. Consequently, this annuity company offers him monthly annuity income of $1176.
However, just before opting for immediate annuity income, you must also take into account all your family members and personal relationships. Remember that with an immediate annuity, the annuitant receives and attractive annuity income but nothing is left for heirs. Should you have that concern, a split annuity might be preferable.
To get a quote for annuity income, get in touch with an insurance agent or perhaps financial advisor and have them shop. They will likely not mention the health-adjusted immediate annuity that will provide you more annuity income so you may need to be your own advocate.
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