An annuity provides you with a regular income when you are old, and you could get even more with higher enhanced annuity rates. The annuity guarantees to pay you an ongoing retirement income until you die. You may live only a few years, or you might well live until you are 100, either way, the annuity will still pay you until you die. Mind you, if you do die somewhat prematurely, your annuity dies with you and once selected, the terms and options of the annuity can’t be altered, so you do need to get it right first time round.
If you are a statistically normal healthy person of average height and weight the annuity provider knows roughly when you might die. However, if you have ill health, you will probably die a little earlier. So, some companies will offer you higher annuity rates. The worse the state of your health, the shorter your anticipated life expectancy, and the higher the annuity income will be. You can get annuity incomes 30% higher with enhanced annuity rates, so it’s worth making the effort to find out if you qualify.
