Enhanced Annuity Rates

What are enhanced annuities?

The annuity rates you receive are based on your expected life span. So naturally, factors that affect this will be taken into account when calculating your personal annuities rates. There are often hundreds of different diseases and lifestyle factors that are considered for enhanced annuities.

Enhanced annuity rates are paid on a sliding scale, based on the severity of your illness or lifestyle factors and their affect on your life expectancy. It is thought that around 40% of retirees buying an annuity could qualify for some level of enhanced annuity with an average increase of 30% on the standard annuity rates.

Who qualifies for an enhanced annuity?

Every annuity provider is different when it comes to factors that affect enhanced annuities. However, as a general rule, lifestyle factors, such as obesity, hypertension (high blood pressure), high cholesterol and smoking will all be taken into account. You could also be eligible for an enhanced annuity if you have cancer, diabetes, asthma, a heart condition or a neurological disorder such as Parkinson’s disease and Alzheimer’s disease.

The level of enhanced annuity payments you receive will depend on a detailed analysis of your condition, with combinations of different factors being taken into account. You may need to undergo a medical examination before your provider makes a final decision on your enhanced annuity. It is also possible that your GP or hospital consultant may be asked for more details of your health history.

Why are enhanced annuity rates higher?

Annuities rates are based on providing you with the maximum retirement income from the funds you have to invest. The longer that income has to last you, the smaller the regular payments will be. However, if you do not have a long life expectancy, your money will not need to last as long, so your enhanced annuity rate will be higher.

For example, if you have been diagnosed with heart disease, your life expectancy is lower than if your cardiovascular system is in great shape. Many annuity providers will be prepared to pay enhanced annuities rates on the basis of this, because they reason they probably won’t have to pay out for as long.

Finding the best enhanced annuity rates

Enhanced annuities rates can be as much as 100% higher than the standard rate, so it’s well worth shopping around to get the best enhanced annuity rates for your particular health condition. Annuities4U will talk to you in detail about your health, then search through hundreds of different enhanced annuities providers to find the best enhanced annuities rates available.

Check our enhanced annuity calculator now to see if you are one of the 40% of retirees who qualify for enhanced annuity rates and to see how much more your enhanced annuity could pay compared to standard annuity rates.