Impaired life annuities, enhanced annuities and ill health annuities

You can get better annuity rates from an impaired life annuity or an enhanced annuity. Sometimes they are also known as an ill health annuity or ill health annuities.

Contact Annuity Arrow for an Independent Financial Advisor to assess your circumstances and determine if you are eligible.

Impaired life and enhanced annuities are good because they pay a higher level of income if you have a health problem that threatens to reduce your lifespan or life expectancy. This is because one of the main factors that actuaries at insurance companies use to set their annuity rates is life expectancy. Putting it bluntly, they are betting on how long you will live for because they want to make money on your impaired, ill health or enhanced annuity. Their impaired life annuity rate is based on you living no longer than they predict. If you die sooner, they make more money and if you last longer it will cost them more money and they may possibly make a loss on your impaired life annuity.

Relevant health problems to make you eligible for an impaired life annuity or an enhanced annuity might include, for example, cancer, chronic asthma, diabetes, heart attack, high blood pressure, kidney failure, multiple sclerosis or stroke.

Some insurers consider less serious conditions to grant an impaired life annuity, although enhanced annuity rates may be less favorable. For example you might be able to get an impaired life, ill health or enhanced annuity if you are overweight, drink a lot or smoke regularly. Some insurance companies also offer higher annuity rates to people who have worked in certain occupations or who live in certain areas of the country, so speak with Annuity Arrow so one of our advisors can shop around and compare the income you can get from different annuity providers.

Apart from the enhanced annuity rate that you gain from an impaired annuity, ill health annuity or enhanced annuity, all other features are the same and you gain still select the same ancillary benefits available through normal pension annuities, such as a spouse pension and escalation.