Enhanced annuities pay more that conventional annuities because the annuitant (s) are deemed to either have a medical condition and/or lifestyle that will mean they have a lower than average life expectancy. This means that the pension provider has calculated that they will have to pay an income for a shorter than average period and so in return, offer higher annual payments. If you think you have a medical condition (either past or present) or lifestyle that would impair your life expectancy, then it is imperative that you explore the opportunity of an enhanced annuity as this will mean that you could increase you annual income. Unfortunately many people do not realise that they are eligible for enhanced rates and, moreover, many providers fail to make enough of an effort to inform annuitants of this possibility.
It is also worth noting that it does not have to be both annuitants who have to meet the qualifying criteria for an enhanced joint-life annuity. If you are planning on buying a joint life annuity, then the health/lifestyle of just one of the annuitants can be taken into consideration when enquiring about enhanced rates. The best course of action for anyone who is considering buying a joint life annuity with enhancements is to seek the advice of an IFA.
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