A Single Premium Immediate Annuities with the “Impaired Risk” (or Rated Age) payout option. Individuals who are deemed impaired risks may qualify for enhanced income payouts, as compared to the non-impaired. The enhanced payout options can be significantly higher.
The term “Impaired Risk” can describe a wide assortment of medical conditions. These conditions, past and present, may have been the result of an accident, disability, or disease etc… The most significant factor is whether the conditions will produce a reduced life expectancy. If so, a lifetime guaranteed payout is projected over a shorter time period; providing a larger payout of the single premium deposited. Equally, this “rated age” could allow for a smaller premium deposit to fund a desired set payout amount. Thus freeing that excess money for other purposes!