If you health is impaired, did you know that you can earn more with immediate annuities? Indeed, as odd as this may sound, there exists a type of immediate annuity that does exactly that.
For decades now, Single Premium Immediate Annuities have served people with a lifetime income; and they continue to increase in popularity as people age. The monthly annuity payments are decided by the annuity company taking into account factors such as current interest rates, standard life expectancy graphs, your age and gender. The life-long annuity payment remains fixed, irrespective of the amount of years you actually live.
Now, here's how your clinical profile can affect the amount of the annuity payment. With a special type of immediate annuity, a medically underwritten immediate annuity, your health history is taken into account. As you might guess, some illnesses are viewed to reduce life expectancy, this impacts the monthly payment immediate annuities that account for health status. If you suffer from health conditions affecting life expectancy, you will receive increased monthly payments. Needless to say, with a little attention and discipline, many people suffering from life-threatening illnesses live a long, healthy existence. You can do the same and receive greater annuity income checks - irrespective of how much time you live.
Here's an example, just to illustrate how a health-adjusted immediate annuity works.
At the age5 of 75, Mr. Brennan decides on a single premium immediate annuity for $100,000. If he selects from traditional immediate annuities, based on age 75, he will receive $784 monthly for as long as he lives. However, Mr. Brennan's life expectancy is significantly reduced due to emphysema from years of smoking. The annuity company, after reviewing his health profile, deems him to have a medical age of 85 and offers him a monthly payment for their immediate annuity of $1,235.
Before grabbing this higher payment, Mr. Brennan should also take into account his family members and personal relationships. Would he like to transfer any of this $100,000? If so, he may want to choose one of the immediate annuity payout options that could leave some of the principal or payments to heirs. Should he make such a choice, it will be at the expense of the monthly income during his own lifetime in the form of a reduce annuity payment.
For a quote on income form immediate annuities, get in touch with an insurance agent or your financial advisor. These specialists could help you arrive upon an immediate annuity that could be suitable. Sometimes, the annuity income, although only partly tax-free, could exceed the actual after-tax income received from other products like municipal bonds.
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Great information you have here, may i also add that annuity payments are calculated based on many factors, one of these being life expectancy, or mortality credits. For instance, someone who is in their 70’s will not be predicted to live as long as someone in their 60s. Thus, monthly payments will be higher for the person in their 70s since the insurance company will not foresee paying that individual for a long period of time. I cover this on my blog, feel free to check it out and leave your comments.