Actually, you don't necessarily need to be in terrific health to get a good deal with an insured annuity. See - with this concept, you're playing both sides of the insurance fence.

If you are in poor health, you indeed may have higher life insurance premiums (because the insurance company figures you're a higher risk of dying sooner than later and they want to get enough money in premiums out of you to justify giving you the policy).

BUT - You're also getting an annuity, and since you are in poor health, the insurance company will give you a higher income since they figure you have a reduced life span.

So as long as you are in good enough health to qualify for life insurance at all, the numbers generally work themselves out.

 And a great observation on having a little additional cash on hand.....it's always prudent to have an emergency reserve. The example I used in the article is fairly narrow in scope, not taking into account what the entire financial situation looks like.

@Linda: You're welcome! I love it when people get it! Not that I specifically recommend any of these products for everybody (you are right in that you need to make the best decision for yourself) - I just want people to understand them.