Impaired life annuity rates can make quite a difference to your annuity income. People in poor health, or with unhealthy lifestyles, such as smoking or being overweight, should seek out specialist advice, otherwise they will be quoted a standard annuity rate based on normal life expectancy for a person of their age and gender and not the enhanced annuity rates from impaired lives or lifestyle annuities. Impaired life annuities pay much higher annuity rates to people with certain medical conditions because of their likely shorter lifespan. Providers include Just Retirement, MGM Advantage, LV=, and Partnership, as well as some well known insurers.
Most of these companies sell their enhanced annuities through independent financial advisers (IFAs). Some experts rightly claim that it’s a shame more people don’t use the open market option, which allows them to shop around with their pension fund to find the best annuity rates available. Some retirees could end up with an improvement in rates of up to 30%, because of their lifestyle, occupation or their ill health. Here’s details of an extreme case transacted a few years ago; a 75-year-old man with lung cancer was quoted a standard annual annuity income of just over £21,000 by his existing pension provider. A specialist enhanced annuity provider was able to boost this by about 80 per cent to nearly £38,500.
