DEFINITION of 'Substandard Health Annuity'
An insurance product that can be purchased by a person with a serious, demonstrable health problem which will likely shorten the annuitant's life expectancy. A substandard health annuity is a type of straight life annuity.
BREAKING DOWN 'Substandard Health Annuity'
These annuities pay out more money per period than other straight life annuities because the length of the annuitant's life is expected to be significantly shorter than that of the average, healthy person of a similar age.