Substandard Health Annuity
Definition
- A type of straight life annuity arranged for individuals with medical conditions that decrease their life expectancy. Income payments are distributed at a faster pace than a normal annuity because of the annuitant's shorter lifespan. Because Substandard health annuities are a type of straight life annuity, income payments stop when the annuitant dies and no payments are made to beneficiaries.
Synonyms
bad health annuity
Related Terms and Acronyms
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Annuity Factor Method — Definition,
- A way of determining the maximum amount an annuitant can withdraw from an annuity before penalties are applied.
- Cash Refund Annuity — Definition,
- An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
- Life Annuity — Definition,
- An annuity that will continue to make payments until the death of the annuitant.
- Life Expectancy Method — Definition,
- A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
- Life Insurance — Definition, Very Important,
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
➥ CanEquity offers life insurance. - Payout Phase — Definition,
- The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
- Straight Life Annuity — Definition,
- An annuity that stops all payments upon the annuitant's death.
