Usually, the people who opt for impaired life annuity are those who are suffering from some kind of a medical ailment and there is a chance that it might affect their life expectancy in the coming future. Most regular annuity incomes usually are stopped or closed once a person passes away. Also those who are suffering from some medical ailment might not get a good income guarantee from a regular annuity plan. Such people have the option of purchasing an impaired life annuity which will provide them with higher payment options than regular annuities.
If the person purchasing the annuity is in ill health, he or she can actually get a better deal of annuity payments from an impaired life annuity plan. There has been a great deal of awareness programs being undertaken to make people realize that they have the option to apply for better annuity rates.
Who Can Qualify For an Impaired Life Annuity
People who have been involved in some kind of an accident and are suffering from some form of mobility problems but do not have any life threatening complications might not get improved annuity rates. Similarly, people who have had heart conditions in the past but have shown considerable improvement or no signs of any subsequent heart problems will also not be considered for payment of higher annuity rates by the Life Offices.
People who are currently suffering from some disease or medical complication that is life threatening are usually the ones who might get the higher annuity rates option. In cases where a person or his/her spouse is expected to have a reduced or shorter life expectancy, the chance of getting a higher rate annuity payment option is very strong. A maximum uplift of annuity rates can be expected up to 75% of the rates of a regular annuity plan.
Apart from people suffering from critical diseases or life threatening medical conditions, those who have other problems of a slightly less serious nature such as diabetes and obesity can also apply for higher rate of annuity payments. The importance of the applicants of such nature has gone up considerably currently and there are many who have been awarded special life annuity plans under such conditions. At the same time, certain chronic obstructive pulmonary disease and non malignant cancers have taken a back seat when it comes to chances for annuity payment options for the impaired.
Procedure for Applying
If you are planning to apply for impaired life annuity, it is advisable to make several applications to different insurance companies. This is being advised because in such cases, medical underwritings are required and the rates being offered differ from company to company. Once your applications are received by the Life Offices, a thorough review of your medical underwriting will be performed and the result will be sent back to you within 2 or 3 days. Once you get the results regarding the life annuity rates that the Life Offices will be offering, you can compare it to the standard rates to see the kind of enhancement you are being provided.
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