Impaired Life Annuity Rates & Advice
An impaired life annuity provides a higher monthly income to those with one of a range of serious medical conditions.
This reflects the statistical probability that their life, and therefore the payment term of the impaired life annuity, will be much shorter than for a healthy person of the same age.
Ask us about impaired life annuities with an annuity enquiry or call 0800 678 5929 now
Impaired life annuities are calculated based on a medical examination, and a detailed investigation of the annuitant’s medical history.
This contrasts with enhanced annuities, where the annuity rates are usually based on a points system, rather than medical information.
Impaired life annuities would also be more suited to those with health problems that are much more serious than those qualifying for the enhanced annuity.
If you are retiring in ill-health, ask us about impaired life annuities – make an annuity enquiry or call 0800 678 5929 now
General Annuity Facts
On retirement, you are entitled to take up to 25% of your pension fund as tax-free cash, and use the remainder to purchase an annuity such as an impaired life annuity. Any tax-free lump sum must be taken, and your impaired annuity must be purchased, before your 75th birthday.
In general, the amount of income you derive from an annuity will depend largely on the size of your pension fund, after you have taken any tax-free cash.
Request an annuity quote or speak to an adviser on 0800 678 5929
It will also depend on whether your fund includes national insurance rebates because you contracted out of the additional State pension. If you are married or have a civil partner, you must buy a 50% spouse’s pension with funds arising from these national insurance rebates.
Income from an annuity will be higher, the older you are when you purchase the annuity. This reflects the fact that the payout period is likely to be shorter, the closer you are to your average life expectancy (currently 86 for a man and 89 for a woman).
As a woman is expected to live longer than a man, her income from her annuity would generally be lower than for a man of the same age, as it is likely that the guaranteed annuity will have to pay for longer.
Annuity rates are adjusted from time to time to reflect upward changes in average life expectancy. This means that, the longer you delay in buying your annuity, the greater the risk you run of a change in the rate.
Ask us about annuities with a financial advice enquiry now, or call 0800 678 5929
