Enhanced Annuity
What is an Enhanced Annuity?
An enhanced annuity works in exactly the same was as a conventional Annuity does, but can provide a higher level of income.
A large range of lifestyle and medical conditions mean many can qualify for an enhanced annuity income - from minor factors such as excessive alcohol consumption, smoking, high blood pressure or raised cholesterol to more serious or life-threatening conditions such as cancers and heart disease.
Facts about Enhanced Annuities
- An enhanced annuity could pay up to 42% more than a non-enhanced conventional annuity for a serious condition.*
- An estimated 60% of clients could have a condition that may qualify for an enhanced annuity*
- As with other lifetime annuities, the income is guaranteed to be paid for life.
- Where the enhancement is for more serious illnesses and conditions, some providers refer to the products they offer as 'Impaired Annuities'.
* Source: Just Retirement 2011
Most providers also offer all the usual Annuity options to:
- Guaranteed income payment for a set period of time.
- Protect a client’s spouse, dependant or civil partner with a percentage of annuity income.
- Protect annuity income from the effects of future inflation.
If you are looking to buy an annuity and have a minor or more serious health condition, it may well be worth allowing us to investigate for you whether or not you qualify for an enhanced annuity, and in turn finding the provider that offers the best level of income for your capital.