The following pension annuity table is for a 60 year old male,
showing the best diabetes enhanced open market option income
for a compulsory purchase annuity, from a pension fund of
£100,000, after the tax free lump sum has been taken
and on a level
basis. The annuity is paid in arrears on a single
life and does not include a guaranteed period.
Diabetes enhanced annuity |
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Gross Income |
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Diabetes
enhanced annuity |
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Standard
highest annuity |
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Standard
lowest annuity |
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Annuity table - the annuity rate
shown above is based on a purchase price of £100,000
and should be used as a guide only. For annuities specific to your circumstances you should complete
the free
annuity quote. |
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At retirement the individual can use a pension fund to buy an annuity and has the option to use an open market option to search for the highest pension annuity. Once you have purchased an annuity it cannot be changed, so learn more about annuities, compare annuity rates and before making a decision at retirement, secure a personalised pension annuities quote offering guaranteed rates.
Medical conditions
If you suffer from other medical conditions in addition to
diabetes, you could be entitled to further enhancements offered
from an impaired
health annuity.
An individual may have suffered from a number of medical conditions
in the past or at present that could mean he or she can qualify
for enhanced or impaired annuities. Some of the conditions
for enhanced rates are as follows:
Medical conditions for enhanced rates |
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Cancer - lung, brest,
bowel, pancreatic, liver |
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Digestive or Bowel
Complaint |
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Bladder or Liver
Complaint |
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It may be necessary for the annuitant to have more than one
of the above conditions before an enhancement is offered.
The following table shows conditions required for the higher
individual impaired rates:
Medical conditions for impaired rates |
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Secondary malignant
cancers |
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Some primary malignant
cancers |
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Kidney disease with
ongoing dialysis |
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Stroke with ongoing
support needed for normal daily living |
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Multiple Sclerosis,
permanent wheelchair support required |
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This list is not exhaustive and when making an application
for enhanced or impaired annuities it is important
to state all medical conditions in order for the pension income
to reflect the expected reduction in the annuitants life expectancy.
General Practitioners Report
Where the annuitant suffers from ill health and is applying
for enhanced or impaired life pension annuities, it is common practice
for the insurance company to request a General Practitioners
Report (GPR). They do this to ensure that the details given
in the application form are correct before paying the annuitant
an income.
When people are younger and applying for life assurance the
underwriters could find reason in the GPR to load the premium
(increase) if they feel that your medical condition creates
a higher risk, and this works against the individual.
However, with enhanced
or impaired annuities the worse the medical conditions
the higher will be the income paid to an annuitant. Where
the individual is uncertain of the details of a medical
condition because it occurred a long time ago, a GPR can
clarify to the underwriters its severity.
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