Enhanced Annuity
If you or your partner suffers from a medical condition, you may qualify for our Enhanced Annuity option, which could make a difference of hundreds or even thousands of pounds to your retirement income.
Our Guaranteed Pension Annuity and Income Choice Annuity are available on enhanced terms, and even a relatively mild health condition may benefit you. This is because we assume people with certain medical conditions have a shorter life expectancy than those who don't, so it's only fair you get more of your money sooner.
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%.
Refer to the following examples to see how you might benefit
- Sarah is aged 65 and has a pension fund of £25,000. She suffers from high blood pressure and has raised cholesterol. She chooses a Guaranteed Pension Annuity on a single-life basis with a five year guarantee. This gives her an income of £1,670.64. She didn't think she'd qualify for an Enhanced Annuity. We assessed her state of health and offered her £1,784.52 a year - an increased income of over 6.8%.
- Matthew is aged 65 and has a pension fund of £100,000. He 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 from within a range we give him. He asks for an Enhanced Annuity because he has chronic pulmonary disease and smokes 20 cigarettes a day. We assessed his state of health and offered him an income of £5,054 - an increase of more than 20%.
What illnesses qualify for an Enhanced Annuity?
You may be able to get a higher pension income with our Enhanced Annuity if you suffer from, or have suffered from one of the following.
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- Cancers including leukaemia, Hodgkin's disease, lymphoma.
- Kidney disease or failure.
- Heart conditions including heart attacks, heart bypass, angioplasty, angina, irregular heart beat.
- Diabetes.
- Stroke.
- Multiple Sclerosis.
- Alzheimer's disease.
- Parkinson's disease.
- Lung disease.
- Liver disease or complaint.
Lifestyle conditions: We will take into consideration conditions associated with your lifestyle such as smoking, high BMI, raised cholesterol and high blood pressure.
We also consider other conditions on an individual basis, but can only offer you an Enhanced Annuity at the time your annuity is purchased.
Want to know more?
If buying your annuity on enhanced terms sounds right for you, or you'd like to know more, call our annuity consultants on Lines are open 9am to 6pm Monday to Friday
In most cases, a quotation will be provided within 24 hours using the information you provide in a questionnaire. For more serious conditions, we may need to obtain detailed medical evidence by writing to your GP. This means the process will take a little longer, but this will enable us to offer you the best possible terms.
If you'd like to read about our Guaranteed Pension Annuity and Income Choice Annuity in more detail, you can do so online.
For general guidance on converting your pension into an annuity, please see our guide to choosing an annuity where you'll also find answers to our most frequently asked questions.
Why choose an annuity with us?
We are the number one provider of annuities in the UK. We pay pension income to more than one million people every year, and in 2008 more than 120,000 people chose to buy their annuity with us - based on Prudential new business figures.
Find out about the wide range of annuities we offer and why choosing an annuity with us makes sense.
