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.