Which type of annuity is best if someone has a shortened life expectancy but needs immediate payments?

An impaired annuity is specifically designed for individuals with shortened life expectancies, offering higher immediate payments compared to standard annuity options. This type of annuity takes into account the individual's health status, allowing for accelerated benefits to suit their financial needs right away.

The purpose of an impaired annuity is to provide financial security during challenging times while allowing the individual to receive regular income without delay. This is particularly important for someone in this situation who needs immediate payments, as it aligns with their requirements for cash flow.

In contrast, other types of annuities like prescribed and registered annuities focus on tax benefits or qualifying for retirement savings, and an accumulation annuity is primarily aimed at growing funds over time rather than providing immediate income. Thus, an impaired annuity is the most suitable choice for someone with a shortened life expectancy who requires immediate financial support.