Annuities for ill health
When it comes to purchasing an annuity there are a number of factors which can have an influence on your final annuity income rate and your health is one of the biggest factors involved. When it comes to determining an annuity rate, in general the company will consider your life expectancy to be the biggest factor – after all the company will be paying you an income for the remainder of your life and this can be costly over an extended period of time.
Your health has a direct impact on your life expectancy and therefore a healthier person may receive a lower annuity income.
On the flipside of that, if you are suffering from ill health and have a low predicted life expectancy then you could be eligible to receive a higher annuity income as in general that income wouldn’t be paid over such a large period of time. In this situation it may be worth shopping around to see if you can find an annuity provider that takes your situation into consideration.
What effect can my health have on my annuity?
Your health has the ability to dramatically change your annuity income, depending on if you have any long or short term medical conditions. Any unhealthy lifestyle habits that you have, including smoking or heavy drinking, can also be taken into consideration.
When it comes to taking out an annuity, the provider will take into consideration your personal health situation and as a result they will conclude a predicted life expectancy. Based on this they will calculate your annuity income, if your life expectancy is longer due to good health then in general your annuity income will be lower as it will be paid over a longer period of time.
What benefits could ill health bring to my annuity income?
If you are suffering from health conditions, either short or long term then you could receive a much higher annuity income. Some annuity providers will offer better rates for people who may have pre-existing medical conditions so it’s worth shopping around to find the right price for your condition – or you could be missing out on a substantial income.