Health and Annuities for the Older Population

Published: 2004
Project ID: UM04-03


We propose to evaluate whether an insurer could provide a two-part annuity offering regular income benefits as long as the purchaser is healthy, and a higher disability benefit in the event of poor health. Since health is a multidimensional concept, we will evaluate a range of health indicators and examine how health status at a baseline age influences subsequent mortality risk at later ages. Using Health and Retirement Study data, we will assess the money’s worth of such an annuity, relevant to the question of how participants in individual pension accounts might perceive the annuitization of assets accumulated for retirement.