Tag Archives: Enhanced Annuities

Which Annuity Is Best?

The main goal of any person who has retired is to usually convert the savings that they have built up towards their retirement into a regular source of cash, so that they may continue having an income. A lifetime annuity is what will usually determine the amount that you are paid, and since you will be paid until you die, it is best that you take the time to find a provider offering the best quote.

There are people who will usually take the first quote that they get although it may not be the best. So, how do you find out which annuity is best and what is the best way in actually obtaining it?

To start with, it is important that people realize that they do not need to purchase their annuity from the same firm that also holds their pension funds. A person can shop around and they may get lucky by getting a better offer from another firm for their annuity.

The Open Market Option offers people a chance shop around and get the best annuity quotes and if you are looking for the best quote, then this is essential in order to obtain the best deal and therefore best income from the pension pot available.

There are a number of annuities that you can choose from, but the most popular are lifetime, unit linked, with profit and enhanced annuities. However, the choice that you make for your annuity will usually be based on your sex, age, health and even marital status.

However, your preference will also contribute to deciding which annuity to choose. It is also important that the rates that you will be paid are determined beforehand so that you may make an even better choice. For instance, people with a serious medical condition can go for the enhanced annuity, since these schemes offer a greater annuity based on the fact people who qualify may not live for as long as a healthy person.

Therefore, there are many annuities that are offered in the market today, and it is up to a person to make the choice on what they want to get. But it is advised that annuity experts are consulted so that a person can be able to make a choice based on informed knowledge. This is important since once you make your choice, you will be stuck with it for the rest of your lifetime.

Which UK Companies offer an Enhanced Annuity?

Many, if not most, consumers look to annuities to help them offset their living costs as they phase out of their working years and enter in to retirement. However, there are many options available to consumers that they often neglect to look in to each annuity that is available to them. For many consumers, this means missing out on an enhanced annuity, offered by an enhanced annuity provider.

With an enhanced annuity, a medical or health condition can actually work in the favor of the consumer. It can even boost annuity by as much as 50%. Enhanced annuities, otherwise known as impaired annuities, work on the notion that a consumer who has a medical condition will have a shorter life expectancy than a consumer who is in a better health state. Enhanced annuity providers believe that they will have to pay out an income for a shorter period of time, given the shorter life expectancy, and therefore, they pay out a higher level of income to the consumer. This allows the consumer to have more money each month, based solely on the idea that they have a medical condition that may shorten their life expectancy.

Nearly 20% of all annuities sold by providers are enhanced, or impaired, annuities. However, several of those consumers who would qualify for an enhanced annuity with an enhanced annuity provider, simply do not apply for the benefit. There are several general conditions that are used as qualification for an enhanced annuity. These include, but are not limited to, high blood pressure, cancer, diabetes, kidney failure, smoking, obesity, high cholesterol, and asthma. Consumers can qualify for an enhanced annuity through an application process that focuses on health and lifestyle conditions. There is hardly ever a medical examination required.

Not every standard annuity provider offers an enhanced annuity. In fact, there are very specific enhanced annuity providers currently on the market. The enhanced annuity specialists currently available include Partnership, Just Retirement, and MGM Advantage. Other enhanced annuity providers include Canada Life, Legal & general, Prudential, LV=, Aviva, and Reliance Mutual.

Any consumer that is looking to invest with an enhanced annuity provider, or any annuity provider, should consult with an independent financial adviser. Investing in any retirement plan can often be confusing and challenging but with so many options available to consumers, purchasing the right annuity for retirement can often be a daunting task for many. Using an expert for advice and information can help to ensure the consumer that they are making the best decision for their individual situation.