Buying an annuity is one of the few times that health problems can work in your favour.
Some providers offer smokers or those who have certain medical conditions enhanced annuities due to the decreased life expectancy of the annuitant.
If you qualify for such an annuity you could expect to receive anywhere from a 1% to 40% increase on the annuity rate you would otherwise expect to get.
When you purchase an annuity, in return for an upfront premium you will receive a regular payout for a pre-agreed length of time, often the remainder of your life.
An annuity is normally purchased with a pension fund on retirement and is the most common way of converting lifetime pension contributions into a pension income when you stop working.
Annuities operate in the opposite way to life insurance, the shorter your estimated lifespan be the higher the regular pay out you are likely to receive.
Unusually low annuity rates have been widely publicised over the last few months, but getting a good deal will depend on a number of things in addition to overall rates, including your age, your gender (until next year), and last but not least, the state of your health.
Generally speaking the more serious your qualifying health problems are the better the rates that you are likely to get with an enhanced annuity.
Qualifying conditions could include but are not restricted to:
You may also be able to get a better annuity deal if you have a history of heart attacks or stroke or if you smoke.
Don't be afraid to ask a provider whether they cover a condition not listed above.
Not all annuity providers offer enhanced rates for the same conditions, so it is always a good idea to shop around to find an annuity rate to suit your individual circumstances.
Even if you do not have any pre-existing medical condition you should explore all your options before deciding on the right annuity for your needs, rather than simply taking the option offered to you by your pension scheme provider, or you could end up missing out in the long run.
Purchasing an annuity can be stressful with a range of options available, it can also be one of the most important financial decisions that you make in later life so you may want to consider taking independent financial advice.
Some providers offer smokers or those who have certain medical conditions enhanced annuities due to the decreased life expectancy of the annuitant.
If you qualify for such an annuity you could expect to receive anywhere from a 1% to 40% increase on the annuity rate you would otherwise expect to get.
When you purchase an annuity, in return for an upfront premium you will receive a regular payout for a pre-agreed length of time, often the remainder of your life.
An annuity is normally purchased with a pension fund on retirement and is the most common way of converting lifetime pension contributions into a pension income when you stop working.
Annuities operate in the opposite way to life insurance, the shorter your estimated lifespan be the higher the regular pay out you are likely to receive.
Unusually low annuity rates have been widely publicised over the last few months, but getting a good deal will depend on a number of things in addition to overall rates, including your age, your gender (until next year), and last but not least, the state of your health.
Generally speaking the more serious your qualifying health problems are the better the rates that you are likely to get with an enhanced annuity.
Qualifying conditions could include but are not restricted to:
- High cholesterol
- Obesity
- Cancer (or a history of the disease)
- Diabetes
- Kidney failure (or a history of the disease)
- Multiple sclerosis
- Heart Disease
You may also be able to get a better annuity deal if you have a history of heart attacks or stroke or if you smoke.
Don't be afraid to ask a provider whether they cover a condition not listed above.
Not all annuity providers offer enhanced rates for the same conditions, so it is always a good idea to shop around to find an annuity rate to suit your individual circumstances.
Even if you do not have any pre-existing medical condition you should explore all your options before deciding on the right annuity for your needs, rather than simply taking the option offered to you by your pension scheme provider, or you could end up missing out in the long run.
Purchasing an annuity can be stressful with a range of options available, it can also be one of the most important financial decisions that you make in later life so you may want to consider taking independent financial advice.
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