# Annuity+Life Insurance vs. GIC for estate planning



## andrewf (Mar 1, 2010)

Thought this was interesting:

http://canadalifeinsurance.blogspot.com/2008/05/insured-annuity-canada-why-invest.html

Question is: if you buy this as a package from an insurance company (effectively hedging their side of the longevity risk), will they offer higher annuity payouts for people in less-than-ideal health? Will any annuity provider offer higher payouts for those less-healthy than average?


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## MoneyGal (Apr 24, 2009)

andrewf said:


> Will any annuity provider offer higher payouts for those less-healthy than average?


Yes, they are called "impaired" (or sometimes "enhanced") annuities. They are rare in the U.S. and Canada, and the market for these products is very thin. They are much more common in the U.K. I have lots of reading material to share if you want to learn more about impaired annuities.


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## andrewf (Mar 1, 2010)

To qualify for these, does one need to have cancer or MS or something, or is it similar to the risk measurement system used for life insurance (ie, where smokers, obese, family history of illness, etc. pay a penalty).


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## MoneyGal (Apr 24, 2009)

Each issuer will have their own set of qualifying conditions. Typically these would include heart disease and diabetes. Some issuers include smoking.


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