Impaired Life Annuity Life Insurance


What is an impaired life annuity?

Until a few years ago, impaired life annuities were available on a one-off underwritten basis but they were not widely marketed. It is only since the arrival of specialist companies and standardised enhancements that competition has come into the impaired life annuity marketplace.

"I know that statistically I won't live as long as a non-smoker and I needed the provider of my annuity to take that into account."

With an impaired or enhanced annuity, it is the mortality return that increases because the insurance company expects your annuity to last for a shorter period of time.

Enhanced or impaired life annuities are not just about heart attacks and cancer. A basic enhanced annuity is available for smokers, but can also benefit people with high blood pressure or who are overweight. An enhancement is also available if you have spent a good portion of your working life in a hazardous occupation, such as mining.

Everyone should check whether a higher income is obtainable from another company when they are converting their pension fund into pension income. However, for one group of pension savers it is vital that they exercise this option. This group is not a small number - research indicates that up to 25% of people are eligible for an enhanced or impaired life annuity cover when they retire.

The QuoteRack approach is to provide your information to a number of specialist insurance brokers and financial advisors who know the market and who understand your particular circumstances. They will contact you to discuss your requirements and to offer appropriate financial advice.


"After a couple of heart attacks and a by-pass operation, my life expectancy will possibly be lower than if I was fit and well. I need the most income I can receive now, rather than over the next 25 years."