Conventional annuity rates or enhanced annuity rates, that is the question, and what a question it is. How significant the answer is. Do you buy a conventional annuity based on standard annuity rates or do you buy an enhanced annuity offering you higher annuity rates? Well, it all depends on your circumstances, as these will lead you towards buying the right annuity for your all important retirement income - an income which might have to last you many years in retirement.
So, conventional Enhanced annuities quotes or enhanced annuity quotes, which is right for you. If you're in good health with a normal lifestyle - you don't smoke, drink excessively, and you're not overweight - then the former is appropriate for you. However, the latter is the right annuity for you if you have any medical or lifestyle conditions to be taken into consideration. Unfortunately, an interesting point to note here is that many people, whilst knowing they should buy an enhanced annuity because of their circumstances, don't, and that decision can prove very costly in terms of lost retirement income.
An enhanced annuity pays a higher annuity income to people with medical or lifestyle issues, and these rates can be a lot higher than standard annuity rates. How much higher depends on the precise type and nature of these issues - i.e. just how ill are you? The more serious your medical condition(s), for example, the higher your retirement income. However, you don't have to be seriously ill to qualify for a higher retirement income; more mild medical conditions can also be taken into consideration.
Why are higher enhanced annuities available? Putting it simply, if you're not likely to live so long in your retirement then the insurance company you buy your Annuity calculator from can pay you a higher regular income because it won't have to pay you that income for so long. Conversely, if you're in good health with no lifestyle issues then the insurance company you buy your annuity from will pay you a lower regular income because it will be paying you that income for a longer period of time - statistically speaking.
An annuity provider will usually request a medical report from your doctor if you're applying for impaired life annuities. They do this to ensure that the details provided by you in your application form are actually correct. If you are offered an impaired life annuity, your retirement income will be higher than from a standard conventional annuity because the annuity provider anticipates paying your income for a shorter period of time overall, and this really can make a significant difference to your important retirement income.
Enhanced annuities are usually offered to regular smokers, but can also benefit those people who are heavy drinkers or who are overweight (perhaps obese), or those with more mild medical conditions. Enhanced annuities may also be appropriate if you have spent a good part of your working life in a more hazardous occupation, such as perhaps mining. Again, the annuity provider will usually request a medical report from your doctor. If you are offered an enhanced annuity, your retirement income will be higher than you'd get from a conventional annuity because the annuity provider anticipates paying you your income for less time. Again, this can make a significant difference to your retirement income.