Guide to Annuities
UK Pensions

Enhanced and Lifestyle Annuities

Generally annuity rates and income levels are based on your age, an assumption you are fit and healthy with a normal life expectancy, and more increasingly in the UK where you live, people who live in less affluent areas usually get higher annuity rates!

However, people who are not fit and healthy or don't have a normal life expectancy due to medical reasons can take advantage of the more favourable terms offered by:

The income from these annuities is based on your health and/or lifestyle, and, unlike other annuities you will be asked for a report from your doctor to verify the details on your application form. If you are accepted for an enhanced annuity, your income will be higher than from a conventional annuity, sometimes as much as 40% higher, because the annuity policy provider expects to pay your income for a shorter period of time. This can make a substantial difference so always take advice to ensure you are offered the right type of annuity for your personal circumstances.

A lifestyle annuity takes into account environmental, behavioural and medical factors (which may include smoking over a long period, obesity, high blood pressure, etc). An enhanced annuity policy pays more than a lifestyle annuity, because as well as being available for regular smokers, and people who are overweight, it may also cover you if you have spent most of your working life in a hazardous occupation, such as mining.

The Pensions Advisory Service gives the following list of providers who offer enhanced annuities: 

Note: These providers
will only accept business through an Independent Financial Adviser.
  • Aviva
  • AXA
  • Canada Life
  • Just Retirement
  • Legal & General
  • LV=
  • MGM Advantage
  • Partnership
  • Prudential
  • Reliance Mutual
  • Scottish Widows

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Guide Contents

What is an Annuity?
When might I need an annuity policy?
Types of Annuities
Pension annuities
Annuity income options
Enhanced and Lifestyle Annuities
Impaired Life Annuities
Annuity Rates
Where can I go to get more help?

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