Enhanced Annuities

The amount you will receive each month from your annuity depends on two main things:

  • How much you paid in.
  • How long your annuities provider will be paying out.

Of course, where annuities are guaranteed for the rest of your life, your provider can’t know for sure how long they’ll be paying out! But they will take your life expectancy into account when considering how much to pay out.

This is where enhanced annuities come in.

What Exactly are Enhanced Annuities?

An enhanced rate annuity is one that pays out a higher rate than standard based on the fact that your life expectancy may be slightly lower than that of others. This information can be based on things like:

  • Whether your smoke.
  • Whether you take regular medication.
  • Where you live, in some cases.
  • Your weight.
  • Whether you’ve been hospitalised with a medical condition before.

If you’re a smoker or have a pre-existing medical condition, you may have a lower life expectancy than those who do not. As such, annuities providers expect that they’ll be paying out over a shorter period of time and will therefore pay more each month through an Enhanced Rate Annuity.

Do I qualify for an Enhanced Rate Annuity?

Up to 40% of retirees could qualify for an enhanced rate annuity! However, many do not know and so don’t apply.

If you meet some of the criteria above, you might qualify.

Here at Annuity Rates, we can help you to get the best rates, which will include Enhanced Rates if you qualify.

Get a quote today.