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You are wondering what to do after your doctor explains you have a serious medical condition.  Not only is the thought of living out your remaining time, perhaps a bit impaired disturbing,  you and your spouse are wondering how to make your money last.  With the possibility of a future filled with increased medical bills and current yields at record lows,  you fear your savings are going to have to be drawn down to the point of depletion.

A possible solution is the medically underwritten annuity.  When applying for a medical annuity you provide your medical records to the insurance company who will then review them to determine your actuarial age.

After determining  the actuarial age it is compared to your chronological age and if  actuarial age is greater the annuity’s monthly income is increased accordingly.  This adjustment can be done jointly  even if your spouse’s health is good.

It has always been important and more so in this low interest rate environment to make sure a retiree’s savings lasts the rest of their and their spouse’s life.  The effort put into getting quotes on a medical annuity can bring a welcome peace of mind making it time well spent

On the positive side; medical science continues to advance at a fast pace so the initial prognosis could  in the end, turn out to be wrong, in which case you get to enjoy good health and a higher than normal lifetime income stream.

You may ask questions in the comments or contact me privately:

Tim Barton

Chartered Financial Consultant

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2 Responses to Medical Annuities Pay More

  1. Paula on August 12, 2013 at 7:31 pm

    Is a medical annuity good investment,if the patient has allot of health issues?

    • Avatar of Tim Barton
      Tim Barton on August 16, 2013 at 9:16 am

      Yes when a person who has potentially life shortening medical conditions a medical annuity is worth exploring because the lifetime payments would be higher. With advances in medical care it is very possible that person could live much longer than expected. In which case they would receive a larger income for a longer period of time. A medical annuity should contain a cash refund feature so that if any money remains unpaid at time of death those funds would be paid to the beneficiaries.

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