Ask a retiree if they consider themselves healthy, and they’ll probably answer 'yes' … even though they may be taking ongoing medication or have previously had a medical condition. Because their condition is considered ‘under control’ or ‘not a problem’, they could end up missing out on potential income.

Don’t take “yes” for an answer..... When asking your clients about their health always scratch beneath the surface. Information on current or previous medications and outpatient hospital visits could be indicators of previous medical and lifestyle conditions that may affect life expectancy and could result in an enhanced annuity rate.

These sample case studies demonstrate the type of cases that could typically qualify for an enhancement:

Samuel

Samuel, 65, continues to suffer from the asthma that was originally diagnosed in his childhood. This could mean that he might qualify for an enhancement of around 24% more income over a standard annuity.   

Scenario is Based on a Male aged 65, 45k fund, 5 years guaranteed, no escalation, no value protection, RH2 7RU  postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16/12/11

Laura

Laura, aged 60 has been diagnosed with Barretts Oesophagus. Laura required surgery and still has to take 1-2 medications daily. Based on these health conditions and lifestyle factors, with enhanced underwriting Laura’s case could qualify for up to a 28% enhancement over the lowest Open Market Option annuity rate.

Scenario is based on a female aged 60 with a fund value of £45k. Quoted Single Life, 5 years guaranteed, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16/12/11.

Brian

Brian, aged 60, suffered a mini stroke four years ago and was hospitalised. He now has to take one blood thinning medication per day and as a consequence his active lifestyle has been reduced. Based on these health conditions and lifestyle factors, with enhanced underwriting Brian’s case could qualify for up to a 35% enhancement over the lowest Open Market Option annuity rate.

Scenario is based on a male aged 60 with a fund value of £45k. Quoted Single Life, 5 years guaranteed, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16/12/11.

Graham

Graham has been suffering with occasional fits during the last year after being diagnosed with Epilepsy 5 years ago at the age of 60. Now aged 65 Graham takes up to 2 tablets a day to try and control his symptoms, however still experiences frequent seizures and is undergoing further tests. Based on these health conditions and lifestyle factors, with enhanced underwriting Graham’s case could qualify for up to a 35% enhancement over the lowest Open Market Option annuity rate.

Scenario is based on a male aged 65 with a fund value of £45k. Quoted Single Life, 5 years guaranteed, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16/12/11.

Charles

Charles 68 suffered a stroke in January 2010 and has been prescribed atorvastatin and clopidogrel since. He also suffered a Transient Ischaemic Attack followed by a carotid endarterectomy operation two years previously. Charles also suffers from visual impairment, bladder incontinence, is only able to walk with the aid of a stick and is entirely dependant on others to wash/bathe. Based on these health conditions, Charles could qualify for a 43% uplift over the lowest Open Market Option annuity rate.

Scenario is based on a male aged 68, with a £45k fund, 5 year guaranteed period, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16/12/2011.

Melanie

Melanie aged 60 was diagnosed with diabetes 21 years ago and medications include 2 high blood pressure medications, 1 cholesterol medication and 1 diabetes medication.  She also suffers from diabetic retinopathy for which she is receiving laser treatment and also has Chronic Kidney Disease (stage 3). The HbA1c reading (the measure of diabetic control) was 9.2 two months ago. Melanie could qualify for a 47% enhancement over the lowest Open Market Option rate.

Scenario based on a female aged 60, with a £45k fund, 5 year guaranteed period, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16/12/2011.