Enhanced Terms

To qualify for enhanced terms, your pension fund must be worth at least £10,000 after any tax-free cash has been taken.

The enhancement paid varies by the severity of the condition, but typically customers who do qualify could expect to receive an increase of between 1% and 29%.

• Sarah is aged 65 and has a pension fund of £50,000 after tax-free cash. She suffers from type 2 diabetes and has high blood pressure. She chooses a Guaranteed Pension Annuity on a single-life basis with a five year guarantee. This gives her an income of £2,928. She didn't think she'd qualify for an enhanced option but we assessed her state of health and offered her £3,154 a year - an increase in income of 7.7%.

• Matthew is aged 65 and has a pension fund of £100,000. He takes 25% tax-free cash and chooses an Income Choice Annuity on a joint-life basis, whereby 50% of his annuity will go to his wife if he dies before she does. He wants to give his income the greatest potential for growth so he chooses the lowest starting income (£3,064) from within a range we give him. He asks for an enhanced option because he has chronic pulmonary disease and smokes 20 cigarettes a day. We assessed his state of health and offered him an income of £3,622 - an increase of more than 18%.

These are just examples, based on Prudential rates as at December 2010, designed to represent a typical situation and does not relate to any particular individual. You should not look upon this as financial advice or a recommendation of a particular course of action. You should consider your own circumstances fully, and may wish to consult a Financial Adviser to help you make a decision.

Some of the illnesses which could qualify for an Enhanced Annuity include:

• Cancers including leukaemia, Hodgkin's disease, lymphoma.
• Kidney disease or failure.
• Heart conditions including heart attacks, heart bypass, angioplasty, angina and heart block.
• Diabetes.
• Stroke.
• Multiple Sclerosis.
• Alzheimer's disease.
• Parkinson's disease.
• Lung disease.
• Liver disease or complaint.

Lifestyle conditions: We will also take into consideration conditions associated with your lifestyle such as high body mass index (BMI).

We also consider other conditions on an individual basis, but can only offer you an Enhanced Annuity at the time your annuity is purchased.

We are one of the leading providers of annuities in the UK currently paying over £2 billion in pension income each year whilst more than 1 million customers choose us for their pension annuity income.*

Find out about the wide range of annuities we offer and why choosing an annuity with us makes sense.

*Prudential 2010