Annuity Quotes Compared

There are many examples of annuity quotes, on the standard annuity rates page, the smoker annuity rates page, and the enhanced annuity rates page. Here we look at how different advisers come up with different annuity quotes for the same clients.

The difference it can make taking advice from a specialist annuity adviser

Take a look at these scenarios. Three advisers asking different questions of two clients with health problems, and coming up with different annuity quotes for each client because of the questions asked. Both clients are male, 65, with a £100,000 pension fund. Income monthly in advance, level, no guarantee period. (Case studies, March, 2009)

The results clearly show that you need to talk to a specialist adviser, and give very full answers, to get the best annuity rates.

First client: diagnosed with lung cancer this year.	Annuity quote	Monthly difference
Best standard annuity rate	£624	n/a
Adviser 1 asked if the client had any health problems. Client Response: ‘yes, recently diagnosed with lung cancer’.	£808	+ £184
Adviser 2 asked if the client had any health problems and had he had radiotherapy or chemotherapy treatment. Client response: ‘yes, undergone both a couple of months after the diagnosis of cancer’.	£946	+ £322
Specialist adviser asked the same questions as Adviser 2 and asked about surgery and whether the cancer had spread. Client response: ‘yes, had part of the lung removed, waiting to see how successful the treatment is, and it has spread to the bones’.	£1487	+ £863

The best deal for this client; an extra £863 per month, or £10,356 per year, for LIFE

Second client: diagnosed with type 2 diabetes 10 years ago	Annuity quote	Monthly difference
Best standard annuity rate	£624	n/a
Adviser 1 asked if the client had any health issues.Client Response: ‘yes, to diabetes type 2, diagnosed ten years ago, taking prescribed metaformin’.	£642	+ £18
Adviser 2 asked if the client had any health issues.Client response: ‘yes, type 2 diabetes diagnosed ten years ago, and taking metaformin. Further questions revealed two more medications for high blood pressure and cholesterol’.	£648	+ £24
Specialist adviser asked the same questions as Adviser 2 and also if the client had any complications relating to his condition. Client response: ‘yes, various. Diabetic, retinopathy, nephropathy, and neuropathy’.	£803	+ £179

The best deal for this client; an extra £179 per month, or £2,148 per year, for LIFE

Comment

These examples illustrate very clearly the importance of taking advice from an adviser who really knows his subject.