For anyone wishing to generate an income from their pension (for example, personal and state) then they would have already thought about taking out an annuity. There are various annuities to choose from, all of which will suit different lifestyle and personal circumstances, and one of these is called Enhanced Annuity. First introduced in the UK back in 1995, enhanced annuities now cover a substantial share of the annuity market, so to learn more, read on.

Up to a massive one in three of us could be eligible to take out enhanced annuity, so what exactly is enhanced annuity and who can get it? Enhanced annuity can be taken out by those who have a lifestyle or one-going medical conditions that could shorten the life of the individual. Not to be confused with Impaired Annuity which covers those with specific life-threatening conditions such as cancer, enhanced annuity is less tailored.

With enhanced annuity, the person can draw out more of their pension over a shorter period of time because they are, in simple terms, not expected to live as long. There are hundreds of medical and lifestyle conditions which are considered with an enhanced annuity, with some of the most common applicants being smokers, heavy drinkers, diabetics and the obese. Because these groups are likely to live as long as healthier adults, they are eligible for enhanced annuity.

There are other factors which annuity providers check when considering enhanced annuity, such as previous and current job occupations, and your post code. It is always important to be honest with your annuity provider because you only get one chance to choose your annuity. If you take out a regular annuity and find out later you were eligible for enhanced annuity, it is too late to switch, so be prepared to be honest from the start.

With a higher income of up to 30% available with enhanced annuity, there are definite advantages to considering this option. With so many medical and lifestyle conditions considered when thinking about enhanced annuity, make sure your annuity provider discusses your health so you know they will offer the best annuity for you.

Find out more about the health conditions and circumstances that might qualify you forenhanced annuities.

Annuities are an excellent way to provide a steady income in later years and many people choose to purchase them every year. However annuity rates differ from person to person for a number of reasons, such as ill health, where they live or their lifestyle choices. Some people are eligible for enhanced annuities, which is where your annuity rate is higher to reflect the fact that, due to a medical condition or certain lifestyle, your life expectancy is lower.

The list of conditions that qualifies you for an enhanced annuity is very long, so always check even if you think an illness might not be listed. Illnesses such as liver or lung disease, that are physical, rather than mental, are extensively covered and the more serious a condition is, the higher annuity rates that your insurance provider is likely to pay you. For one-off instances that could still have an affect on your life, such as a heart attack, the company will explore your case individually and look at how recent or serious the problem was to determine your rates.

However it is not simply conditions that have struck in later life that qualify for enhanced annuities. Long-term illnesses that have affected you your whole life, such as muscular dystrophy, diabetes or multiple sclerosis, are also eligible even though they have not only affected you in later years.

While enhanced annuities apply to those who already have illnesses, certain factors can also qualify for enhanced annuities, despite the fact that they are not illnesses in themselves. Those who have smoked heavily and for a long time qualify, as they are at a highly-increased risk of lung cancer and other diseases. Obese people or those with a high blood pressure are also often eligible as these can both lead to further medical problems with could lower your life expectancy.

Physical illnesses are not the only conditions eligible for a higher annuity rate; mental illnesses also qualify, so make sure that any financial advice received takes this into account. Dementia, schizophrenia, bipolar disorder and Alzheimer’s are all covered by enhanced annuities so it is worth investigating further when looking for annuity and checking that any problem, be it physical or mental, is covered to give you peace of mind.

An annuity is a massive purchase, it’s therefore well worth investigating to find out whether or you might qualify for enhanced annuities.