There are some likely changes with enhanced annuity rates and Alzheimer’s disease. A simple eye test used to diagnose Alzheimer’s disease sufferers is just one of several medical progressions that can be used to cost enhanced annuity plans. Advancements in medical science are continuing to have quite an impact on the annuity market, with providers finding several new ways to predict a retiree’s life expectancy. A recent report in a specialist medical journal revealed details of how a simple eye test could help diagnose Alzheimer’s much earlier than is currently possible.
Several providers of enhanced annuity and impaired life annuity plans confirmed the test would be considered for inclusion in annuity rates underwriting if it became widely available. Alzheimer’s is known to reduce life expectancy, but can also lead to much higher care costs. But some providers warned that, as dementia does not always impact life expectancy as much as other medical conditions, some enhanced rates would be small. Jules Charrington, medical underwriter at MGM Advantage, said that in terms of annuity underwriting, this development could mean younger consumers will qualify for an enhanced annuity rate, as they will have been given a diagnosis of Alzheimer’s disease and potentially other dementias, a few years prior to retirement.
