An enhanced annuity can seriously raise your retirement income. It pays you a greater income when compared to a normal annuity as a result of your lifestyle choices or your health.
When purchasing financial products you generally run into issues for being in poor health. When it comes to annuities this isn’t the case, so if you are suffering with health issues an enhanced annuity could be the perfect option for you!
What exactly is it?
Enhanced annuities operate on the premise that your life expectancy is lowered due to specific medical or lifestyle issues. The annuity provider views you as someone they’ll need to pay for a shorter period of time than someone with a clean bill of health.
So they compensate you by paying you an increased income, basically using up your pension pot faster. This higher income is paid for life, even if your health improves or you decide to change your lifestyle.
How to get your ideal enhanced annuity
- It’s not just about you! You might still be able to get a enhanced joint annuity if your partner is a smoker or has a medical condition, even if you have a clean bill of health.
- Do your research! Certain providers offer certain benefits so while one might by right for you, it may not be right for someone else. It’s important to check the whole market.
- Tell us everything! If you don’t tell us the whole truth you risk missing out on potentially a greater income.
Is a enhanced annuity right for you?
You do not have to have severe health issues to qualify; there are now over 1,500 medical conditions which could raise the income you get from an annuity.
Your life expectancy will be evaluated according to lifestyle choices as well as health to determine the severity of your condition. Please bear in mind its important to be honest about any conditions you may have.
The increase you’ll get is determined by the severity of the health issue, but it doesn’t necessarily have to be a medical condition. If you are overweight, smoke, drink alcohol frequently or take certain medication you may be eligible for an increase in rates and income.
For some annuities you may be asked for a report from your doctor for proof on certain medical conditions or that you smoke.
If any of the below questions apply to you or your partner, you could be eligible for an enhanced annuity –
- Diagnosed with any of the following conditions –
- Cancer (excluding benign tumours or skin cancer)
- Multiple Sclerosis
- Parkinson’s disease
- High Blood Pressure (requiring prescribed medication)
- Diabetes (Treated with either tablets or insulin)
- Suffered any of the below –
- Stroke (Excluding mini-strokes)
- Heart attack that required hospital treatment
- Or these –
- Taken early retirement due to poor health
- A smoker