Substandard Health Annuity


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.

  1. Long-Term Care (LTC) Insurance

    Coverage that provides nursing-home care, home-health care, personal ...
  2. Life Expectancy

    1. The age until which a person is expected to live. 2. The remaining ...
  3. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  4. Straight Life Annuity

    An insurance product that makes periodic payments to the annuitant ...
  5. Term Certain Annuity

    An insurance product that guarantees a periodic payment of a ...
  6. Annuitant

    1. A person who receives the benefits of an annuity or pension. ...
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