Impaired and Enhanced Life Annuities

These are annuities offered by a number of companies. In fact there are more companies active in this side of the annuity market than in the standard open market for standard annuities. This type of annuity takes into account an individuals health and medical conditions. If you have some medical problems then it is worth exploring this option. One of the biggest misconceptions about this type of annuity is that it is only people who have suffered serious health problems who will qualify for an impaired life annuity. This is not necessarily true,  even relatively minor illness could qualify you for a enhanced annuity.


It is true that the more serious health problems, such a cancer and heart problems qualify for the greater enhancement, but even people who have suffered relatively minor health problems could still get a better rate. For example, if you have asthma and high blood pressure then this could qualify you for a better rate than a conventional annuity.


It is estimated that around 40% of people who take out an annuity, could qualify for some sort of enhancement based on their health, previous occupation and/or where they live in the country.


It is a strange market since all cases are assessed on an individual basis, and all companies require medical details, initially at least, provided by you.


For people who have, or have had in the past, serious problems with their health, the difference between a conventional annuity can be staggering. However, if you start building in a spouse's pension or a guarantee period then it can reduce this difference, especially if your spouse is in good health.

Diabetes and Annuities

If you have diabetes then you will qualify for a better rate than a conventional annuity. There is even one provider who has a "diabetic rate". The level of income depends on what type diabetes you have, whether it is controlled by diet alone, or tablets or insulin. If you have any other conditions then the rate could be even higher.

Terminal illness - please note if you are terminally ill, then although you might get a high level of income from an annuity, you might want to consider taking your pension on a the grounds of serious ill health (potentially all of the money paid tax free) 

As independent financial advisers, we can search the entire annuity market on your behalf, and discuss all the options and answer any questions or queries you have. Contact us online or call us on 0800 011 2713 without obligation.

If you can't find the information you're looking for on the website, or you want to know more or have a question, or just want to chat through some details about your pension then please feel free to contact us, without obligation. Either contact us online or call 0800 011 2713.


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