Enhanced Annuities And How To Find Out If You Qualify Based On Your Profile

By Author: Adam Benson
Total Articles: 1
Comment this article

Today in the UK enhanced annuities represent around 10% of the total annuity market,the total annuity market is said to be worth some £12 Billion.Many industry experts say that around 60% of the UK could qualify for enhanced annuity rates.These higher annuity rates are paid by annuity providers to those they think will have shorter than average life expectancy.

How do you qualify?

Enhanced annuities are available for lifestyle habits and medical conditions,today there are some 5,000 medical conditions that could qualify for the higher rates.These medical conditions can be used on their own,such as high blood pressure or in combination with other medical conditions,such as high cholesterol.Even those that think they are fit and healthy and have never had a day off work in their life can qualify.Many of the UK annuity providers also use your postcode as a factor in deciding on whether you qualify for these higher annuity rates,on the basis that the lifestyle of people in some postcode areas will be more detrimental to their health.

What are lifestyle habits?

Lifestyle habits are those such as smoking,smokers ...
... that daily smoke 10 or more manufactured cigarettes and have done so for at least 10 years could qualify for a 10% enhancement on annuity rates,this is due to the well-known fact that smoking shortens life expectancy,it says so on the packet.Other lifestyle habits that may qualify for enhanced annuity rates are drinking alcohol in excess of the recommended levels,so someone that consumed say 40 or 50 units per week may qualify,certainly if in combination with other lifestyle habits such as smoking.The two combined would most certainly get higher annuity rates.

What medical conditions qualify?

As previously stated it is now possible that over 5,000 separate medical conditions either on their own or in combination could allow you to receive enhanced annuities.These conditions range from taking prescribed medication for something such as high blood pressure to the more serious medical conditions such as heart attacks or strokes.There are so many conditions that could qualify that it would most certainly be worth the time and effort completing the medical information form that annuity providers require.

How do you apply for enhanced annuities?

Not all annuity providers offer enhanced annuities,most do now and certainly in the future it is obvious that many more will.There are some specialist annuity providers now that only offer enhanced annuities,these providers have specialist medical underwriters that check each application form individually and offer rates based on what they feel is the life expectancy of that individual.Some of these annuity providers will only deal with financial advisers, they will not deal direct with the public,this is because they do not have the levels of staff required to cope with the expected demand,they therefore choose to accept applications from financial advisers.This means if you think you might qualify for enhanced annuity rates you would be well advised to seek the help of a financial adviser that specialises in annuities and understands the process for applying for enhanced annuity rates.

Find out more about how enhanced annuities might benefit your retirement income and give you the lifestyle you deserve.