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Chapter 9. Insurance and Annuities > Health and Insured Income

Health and Insured Income

Speaking of life expectancy, it's important for us to cover a heath-related aspect of insured income pricing. Insurance companies' price insured income products use broad tables of life expectancy. If the table says that you will live longer, the insurance company will pay less each month because it will be paying out for a longer period of time.

Many people have life-shortening factors that, when taken into account, could dramatically increase the amount of money the insurance company would be willing to pay. Morbid thought, you say. Yes, it is—and certainly not one you would strive to achieve, but Mother Nature isn't as generous with some people as with others. The genetic track can produce diseases like diabetes, while not life threatening, do impact mortality. Some insurance companies are willing to underwrite insured income and provide enhanced payouts to those with life expectancies less than those used in the traditional tables.


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