What Does Substandard Health Annuity Mean?

Believe it or not, but there exists such an insurance product which is offered to those people who suffer from extremely serious, deadly illnesses. This product is called a ‘substandard health annuity’, and it may be purchased even by those who have an evident health problem that is capable of being demonstrated by an insurance company. So although the annuitant’s serious illness is very likely to diminish his or her life expectancy, they can still be provided with a life annuity.

Substandard Health Annuity Explained

Substandard health annuity belongs to the category of straight life annuities. However, substandard annuities have larger monthly payments than the premiums provided by other straight life annuities due to the shorter life expectancy of the annuitant. As these insured people are very likely to live shorter on the average than the common man with the same age (or at least this is the general pattern), their premiums that are received periodically are higher in order to compensate them.