Impaired Annuity

An impaired annuity offers pricing that takes into account the health status of the potential annuity owner. For example, a person with a serious health condition may receive more attractive pricing through an impaired annuity due to the fact that they are in poor health and their mortality risk is above average. In contract to life insurance, poor health and higher mortality risk can result in better annuity prices. Impaired annuities are sometimes referred to as enhanced annuities.