Did you know that if you suffer from ill health, from certain medical conditions, or if you take regular medication of certain types, that you could be eligible for increased annuity rates via an impaired life annuity? And what does that mean? It means a higher retirement income.
At this point you could be confused. You possibly thought that you might be eligible for an enhanced annuity, not an impaired life annuity. Well, it is a bit strange, and I’ve been trying for years to figure out the difference, and I’ve got it down to this. In normal circumstances of ill health, medication, or if you are a smoker you are eligible for the former, and the latter only comes into play if you have a serious illness which has a significant likely impact on how long you might live.
So basically they are the same thing. Both pay out enhanced annuity rates (i.e. increased) if you are eligible, but an impaired life annuity will pay more. They both pay increased rates because statistically your life expectancy will be less, and the lower your life expectancy, the higher the annuity payments. Why? Because they will be paid out for a shorter period of time.
If you are looking for annuity quotes trying to find the best annuity rates for your needs, make sure you disclose any lifestyle or medical conditions. It could make you better off in retirement.
