Impaired annuities are a relatively new concept in the world of retirement planning. Furthermore the issues that can earn you an enhancement can be surprisingly simple. Our approach with our customers is to ask the key questions that could mean you qualify for an impaired annuity.

There are many questions people may have about impaired annuities, we have listed a few of the most common ones. If you have a question that is not featured below, then please ask us. If your question will be of help to other customers we will include it on this page. You can contact us by calling 020 33 55 4827 or using any of the methods featured on the contact us page.

I am in good health but my partner would qualify for an enhanced annuity - Will this help me ?

If you plan to include your partner on your annuity then, even though it is your pension fund and in your name, your partners health could earn you an increase.

Many factors will come into play in such a situation and it is not possible to discuss them all in this section, but every aspect of the annuity will be considered by the underwriter and, if they believe, that there is some aspect to the case that means that the annuity will payout for a shorter period, then an enhancement is a likely outcome. Therefore a partner with poor health could mean additional income from your annuity. Many customers only think the enhancement applies to them, but your partner's health can make a significant difference.

Conversely somebody who is in poor health and wishes to include a partner who is in good health may find that the annuity they are offered is not much better than a standard rate annuity. In this case it could be that the partner's life expectancy is such that the underwriter feels the annuity is likely to pay out for a normal term.

The important thing is that you take the annuity on the basis that you want irrespective of whether you will receive an enhancement or not. After all it could be a mistake to exclude a partner from an annuity because you will get a better enhancement. You could die suddenly and leave your partner with nothing.

How much of an enhancement can I expect ?

This question, and others like it, are the most common questions we get asked with respect to enhanced annuities. Unfortunately it is not possible to answer it, lets explain why :

While we deal with many impaired annuity cases, no two cases are exactly the same. This isn't only due to the different conditions and degree of impairment, but also down to the number of variables involved with all annuities, such as the customers age, whether a partner is to be included any guarantee period and so on. This makes it impossible for us to give you an indication. We will of course be very happy to provide you with bespoke quotes without any obligation.

The following should also be remembered. Even without any impairment the Financial Services Authority have estimated that by getting quotes from all providers rather than your existing pension fund provider can increase your income in retirement by as much as 30%. If you are in such a position and you also qualify for an enhancement then the increase can be substantial. We have on record testimonials from customers who have received as much as 50% more than the amount they were offered by their own provider.

Will I have to attend a medical ?

While we can never say never, at the time of writing this page, we have never yet had a case go to a medical. In our experience the underwriter are happy to rely upon your medical records to confirm you have the conditions stated on your application. In the rare cases where there may be some doubt, these can normally be resolved between the underwriter and your doctor.

Just like all form of insurance the principle of 'utmost good faith' (Uberrima fides) applies. This means that the insurer trusts and relies upon the fact that you are providing them with truthful information to the best of your knowledge. This means that the insurer will provide you with quotes based on the conditions you have stated without you needing to attend medicals or other tests first.

If you take up the annuity then the insurer may contact your doctor to ensure their records reflect the conditions you have stated. Again in our experience significantly less than 1% of cases result in any discrepancy and then they have been resolved in favor of the customer.

Obviously if you make a declaration that proves to be false then the annuity provider reserves the right to review the annuity they are offering you.

I purchased an annuity a few years ago, I have now suffered a major illness - can I switch to an impaired annuity ?

If you have purchased an annuity then regrettably no. One of the main features of an annuity is that they a guaranteed for life. This gives you some certainty that your income will be guaranteed for life, but the downside is that once set up they cannot be changed.