Impaired annuities are very much in the news today. The Telegraph has made a front page splash of Aviva’s decision to pay compensation and increase payments after uncovering that hundreds of customers were sold inappropriate deals. At issue is that the company sold people standard annuities despite them being eligible for higher payments due to health issues or lifestyle choices.
The numbers vary considerably, but one major annuity broker highlights some possible income uplifts for impaired life products. If you’ve already suffered a stroke or had a heart attack, for example, you could easily be entitled to an annuity uplift of up to 75%. Even merely being a self-confessed smoker or overweight could increase your income by over 15% compared with the best standard products.
Anyway, the Telegraph article is well worth a read if you are considering buying an annuity. The lesson is, do check out the full range of annuity options and remember that up to 60% of annuity purchasers might qualify for enhanced income.