An enhanced annuity is a type of annuity that pays a higher income to people who have certain medical conditions or lifestyle factors that could shorten their life expectancy. The idea is that if you’re likely to live for a shorter period of time, you should receive a higher income for the time you have left.

According to 1, some of the medical conditions that may qualify for an enhanced annuity include:

  • Asthma
  • Cancer
  • Chronic obstructive pulmonary disease (COPD)
  • Diabetes
  • Heart disease
  • High blood pressure
  • Kidney failure
  • Multiple sclerosis
  • Parkinson’s disease
  • Stroke

However, this is not an exhaustive list, and other conditions could also be considered. It’s important to take the time to collect as much of your client’s medical history as possible to determine whether they are eligible for an enhanced annuity.

It’s worth noting that not all annuity providers offer enhanced annuities, and those that do may have different criteria for eligibility. Some providers may require you to undergo a medical examination or complete a health questionnaire to determine your eligibility, while others may simply ask for your medical history.

If you’re considering an enhanced annuity, it’s important to seek professional advice to ensure that you fully understand the product and its benefits. A financial advisor can help you understand the different products available and find the one that’s right for you.

1: Standard Life

What medical conditions qualify for an enhanced annuity