Impaired annuity

If you are diabetic or suffer from health problems such as cancer, heart disease or high blood pressure, you may be able to increase your income in retirement by considering an Impaired Life Annuity. If you are a member of a Personal Pension Scheme the chances are, that at retirement age, your pension provider will supply you with a quotation of benefits.

This will normally be based on a Tax Free Lump Sum together with an income for life. The income is provided by purchasing an Annuity.

Applicable medical conditions

You can apply for impaired annuities if you have diabetes or any of the following medical conditions:

  • Regular cigarette smoker
  • Heart Attack
  • Chronic Asthma
  • Multiple Sclerosis
  • Stroke
  • High Blood Pressure
  • Cancer – lung, breast , bowel, pancreatic, liver
  • High Cholesterol
  • Overweight
  • Digestive or Bowel Complaint
  • Bladder or Liver Complaint
  • Dementia
  • Emphysema
  • Secondary malignant cancers
  • Chronic heart disease
  • Some primary malignant cancers
  • Kidney disease with ongoing dialysis
  • Chronic Lung Disease
  • AIDS
  • Stroke with ongoing support needed for normal living
  • Multiple Sclerosis, permanent wheelchair support
  • Motor Neurone Disease
  • Hodgkin’s Disease
  • Parkinson’s Disease
  • Alzheimer’s Disease

The amount of income you will receive will be based on various factors, including the size of your fund, your age, if you wish the income to rise throughout your retirement and the current Annuity rate.

The majority of people simply take the amounts offered by their Pension Provider without being aware that they have the ability to shop around for a better rate and move their fund without cost if they find a better deal.

When Annuity rates are set, one of the main considerations is the amount of time the pension will need to be paid for. i.e. the pensioner’s life expectancy!

Many Pension Providers simply assume that the client will live to an average age, however, there are a few companies who will consider the actual health of the client when they purchase the Annuity.

If a client is in poor health then it would be fair to say that they may have a shorter life expectancy and therefore the pension will not be paid for as many years.

The logical conclusion of this is that the Pension Provider should therefore be able to pay a higher pension as they will be paying it for a shorter length of time!

If you would like to see if you are eligible for an Impaired Life Annuity please feel free to fill in the short enquiry form above.