Annuities for People with Diabetes

14th February 2012

When it comes to determining an annuity income, one of the main elements which is taken into consideration is your current health and lifestyle habits and this includes any pre-existing medical conditions that you may have. Pre-existing medical conditions can have a direct impact on your life expectancy and therefore you may be eligible to receive a higher annuity income as a result. In some situations this income could be over 30% higher than what you would traditionally receive.

How could having Diabetes affect my annuity income?

Annuity incomes are determined from a wide range of factors including where you live, how old you are, what kind of lifestyle you lead and your health, the latter of these being one of the most important. Traditionally the amount of annuity income you receive is related to your predicted life expectancy so it is given that if you carry a long term illness and your life expectancy is lower, then you will be eligible to receive a higher annuity income as it will generally be paid over a shorter period of time.

When it comes to having an illness such as diabetes, this is often considered to be a long term illness which in many situations can considerably shorten your lifespan, as a result you could be eligible to receive a higher annuity income.

What are impaired and enhanced annuities?

When it comes to choosing your annuity, shopping around for an impaired or enhanced life annuity can make a real difference to your final annuity income. Impaired and enhanced annuities in general offer better income rates for people who may be suffering from long term illnesses or other impairments which could significantly shorten their lifespan.

Impaired and enhanced annuities offer a package for people who may have a shorter life expectancy, as it is assumed that the annuity will not be paid over as long a period as say someone who may be healthier or younger, the annuity income amount per year could be higher, given that it is paid for a shorter amount of time. Shopping around for this type of annuity could make significant savings for the annuitant.

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