I have been reading a lot recently about annuities, as I have had a lot of clients asking about them. One kind of annuity in particular has caught my attention, and that is the impaired annuity.
Impaired annuities are intended for people with terminal conditions. Similarly to standard annuities, they offer guaranteed income for the life of the annuitant. However, the terms are often more favourable than a standard annuity because the payment term will be greatly shortened. This type of annuity is intended for people who would not qualify for other products. Because of the annuitant’s health condition, these products will pay a much higher rate than standard annuities. This will often allow the annuitant to receive additional income at a time when other income sources may be depleted.