Enhanced Annuities

What are enhanced annuities?

Enhanced annuities can be defined as annuities which have improved rates (enhancements) based on the fact that the individual has a lower than average life expectancy. This calculation is based on their current state of health. The two main factors which impact your state of health and are considered by annuity providers are any current or past medical conditions, along with your lifestyle choices. Should you have a medical ailment (s) which could impact on how long you live, you could potentially be in line for a higher annuity rate. This is because the annuity provider will calculate you will have a shorter than average life span and consequently they will have to pay out for a fewer number of years. It is also the case that if you drink and/or smoke on a regular basis, you could also potentially be entitled to a better rate. Equally if you take medication for a condition which could potentially impact on your life span, an advisor is also likely to take this into account.

Here is a list of the main enhanced annuity conditions…

  • Alzheimers
  • Amyotrophic lateral sclerosis (ALS)
  • Bi-polar disorder
  • Cerebrovascular accident (CVA)
  • Cerebrovascular- brain haemorrhage
  • Cerebrovascular- lacunar infarct
  • Cerebrovascular- stroke
  • Cerebrovascular- subarachnoid haemorrhage (SAH)
  • Cerebrovascular- transient ischaemic attack (TIA)
  • Deep vein thrombosis (DVT) or pulmonary embolism (PE)
  • Dementia (All types)
  • Diabetes, type 1
  • Diabetes, type 2
  • Haemochromatosis
  • Heart- angina
  • Heart- aortic aneurysm or abdominal aortic aneurysm
  • Heart- arrhythmia
  • Heart- atrial fibrillation
  • Heart attack
  • Heart- av block
  • Heart block
  • Heart- brachycardia
  • Heart- bradycardia
  • Heart- cardiomyopathy (All types, incl HOCM)
  • Heart- endocarditis/myocarditis/pericarditis/viral heart infection
  • Heart- enlarged heart
  • Heart failure
  • Heart inflammation
  • Heart- pacemaker implant
  • Heart- prolapse valve
  • Heart- regurgitation
  • Heart rhythm disorder
  • Heart- stenosis
  • Heart- supraventricular tachycardia (SVT)
  • Heart- tachycardia
  • Heart valve disorder (mitral, aortic, bi-cuspid, congenital, from birth)
  • Heart valve replacement
  • Heart- ventricular ectopics
  • HIV/AIDS
  • Huntington’s disease/chorea
  • Kidney- (end stage) renal failure (ESRF)
  • Kidney- chronic kidney disease (CKD)
  • Kidney- glomerulonephritis
  • Kidney- other
  • Kidney- polycystic kidney disease (PKD)
  • Kidney- transplant
  • Liver- cirrhosis
  • Liver- hepatitis (unless hepatitis A and fully recovered)
  • Liver- other
  • Liver- transplant
  • Major organ transplants
  • Motor neurone disease
  • Multiple sclerosis (MS) all types
  • Muscular/myotonic dystrophy
  • Parkinson’s disease
  • Peripheral vascular disease (PVD) or intermittent claudication
  • Respiratory- asbestosis
  • Respiratory- asthma
  • Respiratory- bronchiectasis
  • Respiratory- chronic bronchitis
  • Respiratory- chronic obstructive pulmonary disease (COPD)
  • Respiratory- emphysema
  • Respiratory- pleural plaques
  • Respiratory- pulmonary fibrosis
  • Rheumatoid arthritis
  • Schizophrenia
  • Alzheimers
  • Amyotrophic lateral sclerosis (ALS)
  • Bi-polar disorder
  • Cerebrovascular accident (CVA)
  • Cerebrovascular- brain haemorrhage
  • Cerebrovascular- lacunar infarct
  • Cerebrovascular- stroke
  • Cerebrovascular- subarachnoid haemorrhage (SAH)
  • Cerebrovascular- transient ischaemic attack (TIA)
  • Deep vein thrombosis (DVT) or pulmonary embolism (PE)
  • Dementia (All types)
  • Diabetes, type 1
  • Diabetes, type 2
  • Haemochromatosis
  • Heart- angina
  • Heart- aortic aneurysm or abdominal aortic aneurysm
  • Heart- arrhythmia
  • Heart- atrial fibrillation
  • Heart attack
  • Heart- av block
  • Heart block
  • Heart- brachycardia
  • Heart- bradycardia
  • Heart- cardiomyopathy (All types, incl HOCM)
  • Heart- endocarditis/myocarditis/pericarditis/viral heart infection
  • Heart- enlarged heart
  • Heart failure
  • Heart inflammation
  • Heart- pacemaker implant
  • Heart- prolapse valve
  • Heart- regurgitation
  • Heart rhythm disorder
  • Heart- stenosis
  • Heart- supraventricular tachycardia (SVT)
  • Heart- tachycardia
  • Heart valve disorder (mitral, aortic, bi-cuspid, congenital, from birth)
  • Heart valve replacement
  • Heart- ventricular ectopics
  • HIV/AIDS
  • Huntington’s disease/chorea
  • Kidney- (end stage) renal failure (ESRF)
  • Kidney- chronic kidney disease (CKD)
  • Kidney- glomerulonephritis
  • Kidney- other
  • Kidney- polycystic kidney disease (PKD)
  • Kidney- transplant
  • Liver- cirrhosis
  • Liver- hepatitis (unless hepatitis A and fully recovered)
  • Liver- other
  • Liver- transplant
  • Major organ transplants
  • Motor neurone disease
  • Multiple sclerosis (MS) all types
  • Muscular/myotonic dystrophy
  • Parkinson’s disease
  • Peripheral vascular disease (PVD) or intermittent claudication
  • Respiratory- asbestosis
  • Respiratory- asthma
  • Respiratory- bronchiectasis
  • Respiratory- chronic bronchitis
  • Respiratory- chronic obstructive pulmonary disease (COPD)
  • Respiratory- emphysema
  • Respiratory- pleural plaques
  • Respiratory- pulmonary fibrosis
  • Rheumatoid arthritis
  • Schizophrenia

There are also other factors that are considered such as your weight and where you live in the UK. Obesity for example reduces life expectancy and is more likely to cause diabetes. With regards to location, people in more deprived areas of the UK tend to die younger than people in more prosperous areas, and this is often taken into account when a rate is calculated by an insurer.