Did you know that if the health profile is not great, you can actually get larger annuity payments? Indeed, because strange as this may sound, you will find there's type of annuity that does that.
For decades now, single premium immediate annuity payments are provided to investors in return for a single premium. All you need to do is pick the 'life' option, and you secure a life-long income; almost like an additional social security check. The annuity payment amount is based on your age, your investment amount and current annuity rates. The annuity payments remain fixed irrespective of how long you live.
Now, here's how your medical profile can affect the outcome for the income that you receive. Some insurance companies also incorporate your individual health history as a factor in calculating the annuity payments. Because typically, some illnesses are believed to be to reduce life expectancy, this makes a change in the immediate annuity payments. If you suffer from health conditions affecting life expectancy, you will receive larger monthly payments as the insurance company expects you to have fewer remaining years and thus fewer annuity payments for them. Needless to say, with a little proper care and discipline, many people suffering from life-threatening illnesses live long, adequate lifestyles. You can do the same and receive larger, annuity payments irrespective of the length of time you live.
Here's an example of how ill health increases annuity payments.
Mr. Jones, age 70, invests $100,000 in an immediate annuity and the insurance company can pay him $871.05 each month, which is a 15.4% annual payout rate (cash on cash return). But, Mr. Jones learns of the aforementioned health-adjusted immediate annuity, applies for it and because of his negative heath profile, the insurance company makes an adjustment. Rather than expecting Mr. Jones to live 16 years, the average for a 70-year-old, they deem he will live only 10 years. Consequently, he will receive an annuity payments of $1393.68 per month, a 60% increase!
Do not expect the annuity agent to mention this option as few agents know about it and not every annuity company offers health-adjusted immediate annuities. Plus, this sale takes more work by the agent and because health underwriting is involved, the sale is delayed. Therefore, some annuity agents don't mention this option intentionally. So get an independent agent that can do the shopping for you and get you the highest annuity payments. To get immediate annuities quotes for annuity payments that you can obtain for immediate annuities, get in touch with an insurance agent or perhaps financial advisor.
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