Some are fastidious in their annuities research – while others don’t shop around and simply take the first annuity rates offered to them by their pension provider. However, whichever end of the spectrum you’re at, there’s a few things you still might now know about annuities…

1.       Annuities are nothing new! In fact, we can trace their roots back to the Roman Era, when Roman Citizens would make a one time payment to the “annua,” and in return would receive a set annual payment for the rest of their lives.

2.       The annuity rates you’re offered from some providers could vary according to your postcode! This is based on the fact that people living in traditionally “wealthier,” areas are thought to benefit from a longer life expectancy.

3.       Annuity rates vary by gender! Yes, this type of “discrimination,” is perfectly acceptable in the annuities industry because annuity rates offered are based on life expectancy, something that is indeed gender dependent. Women have a longer life expectancy than men, thus are often quoted lower annuity rates.

4.       A pension annuity is technically considered an insurance product.

5.       Those who have smoked for ten years or more (at least ten cigarette a day), those who regularly exceed the recommended maximum number of units of alcohol, those who have an unhealthy BMI and those who suffer from any one of a number of pre-existing medical conditions could qualify for enhanced annuity rates.

Stroke, loss of brain functions due to the interruption of blood supply to the brain, due to blockage or bleeding. Depending on which part of the brain is affected, it can temporarily or permanently impair mobility, speech, vision and other functions. A serious stroke can have long lasting effects and the patient’s mobility and activities could be compromised. Also, TIA, Transient Ischaemic Attack (‘mini-stroke’) temporary disturbance in the blood supply to the brain, causing symptoms which pass within 24 hours. No permanent neurological damage occurs.

Enhanced annuities are available for over 1,500 lifestyle and medical conditions and the best way sometimes to understand the benefits is to demonstrate them in a case study example. This particular case study revolves around enhanced annuities and stroke. The case study below is provided by Just Retirement, a leading provider of enhanced annuities.

Arthur was hospitalised with a stroke four years ago. The condition left him with impaired speech and unable to walk without difficulty so he uses a wheelchair. Consistent with a stroke, Arthur, now aged 65, has high blood pressure, abnormal cholesterol, is susceptible to bladder infections and is on daily medication.

With enhanced underwriting based on these health conditions and severely restricted activities of daily living, Arthur’s case could qualify for up to a 50% enhancement over a typical annuity rate.

Scenario is based on a man aged 65 with a fund value of £40k. Quoted Single Life, monthly in advance, nil guarantee, level and no Value Protection. Correct as at 26/11/09. Typical annuity rate sourced from The Exchange 26/11/09

To ensure you have checked fully whether you qualify for enhanced annuities we would recommend that you consult with an independent financial adviser that specialises in annuities and give them all your lifestyle and medical information for them to check with all the providers that quote for enhanced annuities for stroke.