What is an impaired life annuity; or enhanced annuity? What about the annuity rates on offer via these pension annuities? If you suffer from any severe form of ill health then you may be eligible for impaired life annuity rates, also known as enhanced annuity rates. By opting for this type of pension annuity, you will receive better rates, but the level of increase will depend upon the severity of your ill health, and the type of medical condition you are suffering from. These increased annuity rates can be offered because the life expectancy of the individual is reduced and therefore the payment period will be reduced.
Some of the many medical conditions which qualify for impaired life or enhanced annuity rates include high blood pressure, asthma, multiple sclerosis, heart attack, kidney failure, or stroke. However you may not need recognised types of medical conditions, you could qualify if you are overweight, perhaps, or are a heavy smoker. You may also qualify for these higher rates if you have worked in certain industries, such as coal mining, or live in areas with a lower than average life expectancy, such as around Glasgow, for example.