Substandard Health Annuity


  • 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.

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.
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