Intermediate

Enhanced Annuities

What is an Enhanced Annuity?

Enhanced annuities offer higher retirement income for people with medical conditions or lifestyle factors that might reduce their life expectancy. These annuities recognize that some people may not live as long as others and therefore provide higher regular payments.

Key Benefit

Enhanced annuities can provide up to 40% more income than standard annuities, depending on your circumstances.

Qualifying Health Conditions

Many health conditions could qualify for enhanced rates:

Common Medical Conditions

  • High blood pressure
  • Diabetes
  • Heart conditions
  • Cancer (current or previous)
  • Stroke
  • Multiple sclerosis
  • Respiratory conditions

Less Common Conditions

  • Neurological disorders
  • Liver or kidney disease
  • Autoimmune conditions
  • Mental health conditions

Lifestyle Factors

Various lifestyle factors can also qualify:

  • Smoking: Current or recent smoking history
  • Weight: Being significantly overweight
  • Alcohol Consumption: Above average intake
  • Occupation: Hazardous work history
  • Location: Living in certain postal codes

How to Qualify

The qualification process involves:

  • Completing a health and lifestyle questionnaire
  • Providing details of medications
  • Possibly requiring a doctor's report
  • Sometimes needing medical examinations

Important Note

Always disclose all health conditions and lifestyle factors - even minor conditions could increase your rate.

Types of Enhanced Annuities

There are several variations available:

Lifestyle Enhanced Annuities

  • Based on lifestyle factors only
  • Simpler qualification process
  • Moderate rate enhancement

Medical Enhanced Annuities

  • Based on medical conditions
  • Requires medical evidence
  • Potentially higher rates

Severely Impaired Life Annuities

  • For serious medical conditions
  • Highest potential rates
  • Detailed medical assessment required

Benefits and Considerations

Benefits

  • Higher income for life
  • Better value for money
  • Same security as standard annuities
  • Various options still available (joint life, escalation)

Considerations

  • Medical information required
  • Process can take longer
  • Rates vary significantly between providers
  • Still irreversible once set up

How to Apply

Follow these steps to apply:

  1. Gather medical information and records
  2. Complete health questionnaires
  3. Compare quotes from multiple providers
  4. Consider using a financial advisor
  5. Choose the best provider and rate

Shopping Around

Different providers specialise in different conditions. Always compare multiple quotes to find the best rate for your specific circumstances.

Common Myths

Let's address some common misconceptions:

  • Myth: Only serious conditions qualify
    Reality: Even minor conditions can increase rates
  • Myth: It's complicated to apply
    Reality: The process is straightforward with the right support
  • Myth: Medical exams are always required
    Reality: Many cases only need a questionnaire

Next Steps

To explore enhanced annuities further: