How ill do you have to be before receiving an impaired life annuity?
An individual aged 50 to 75 could be healthy now but due to their lifestyle have a reduced life expectancy. For example, they may have smoked 10 cigarettes per day for the past ten years and could qualify for an enhanced annuity. A smoker could receive up to 25% more income from a pension annuity depending on their age. May be the individual has been a manual worker most of their working life or lived in a particular location and this could mean they qualify for enhanced terms. For a more serious illness what is important is how this reduces the life expectancy of the individual, even if they can get around and do things today. So for impaired life annuities the medical conditions as well as the age are taken into account by the underwriters.
