What is an Enhanced Annuity?
When a pension provider is looking to form a quotation for an annuity, one thing they will pay close attention to is your life expectancy. There are series of contributory factors which make up how an annuity adviser will decide on how long you may live. These include where you live, your lifestyle habits, your general health and whether you are a smoker. In general, the earlier you are likely to die, the better rates you will be offered. Annuity advisers will only look at things that may reduce your life expectancy, as opposed to your actual quality of life. Each enhanced annuity quote will be done on a case-by-case basis, ensuring that the most accurate policy is then offered at the end of the process.
Do I Qualify?
Knowing whether you are eligible for an Enhanced Annuity is a pretty straightforward process. If you seek the assistance of an IFA, they will be able to guide you through the process. However, if you are a smoker or take prescription medicine or have been in hospital for any length of time then you could qualify for enhanced rates. In order to qualify you will need to supply detailed information of the health conditions, hospital stays, prescriptions and smoking history in order for the pension provider to find the exact best deal for you.
It is worth noting that not only those who smoke or have recognised health conditions could quality for enhanced annuities. Even conditions such as higher than average blood pressure or diabetes could mean you are eligible for higher annuity rates.
General Practitioners Report
If you do apply for an enhanced or impaired life annuity it is likely that your annuity provider will ask for General Practitioners Report (GPR). This is so that they can check that what you said on your application form is correct and accurate. These are commonplace for those seeking life insurance as it helps determine the level of premium that the policy holder should pay.
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