Diabetes, Pensions and Annuities FAQs

Frequently asked questions about enhanced and impaired annities, conditions that qualify for impaired and enhanced annuities and how to get a general practitioners report to qualify for enhanced or impaired annuity.

Enhanced pension annuities are applicable to people with diabetes or any of the following medical conditions: heart disease, cancer, high blood pressure, high cholesterol, asthma, stroke and kidney disease. For a full list, please see the applicable medical conditions.

How much extra will I get from an enhanced or impaired annuity?

Different types and extremes of diabetes carry different risks in the eyes of pension policy makers, and this will influence the enhanced annuity or impaired annuity rates offered.

Risk categories may include insulin dependent diabetes, non-insulin dependent diabetes and diabetes controlled by diet.

The extremity of diabetes type, including diabetes complications, obesity or unhealthy lifestyle such as smoking, will all influence how much extra annuity people with diabetes receive.

My pension company want me to buy a conventional annuity through them, can I get an enhanced annuity because I have diabetes?

When your pension company has given you an illustration of what your retirement income will be, you can choose to take the Open Market Option.

You can seek an enhanced annuity or impaired annuity at this point.

Why is choosing the right annuity important?

Once an annuity is chosen, whether you have diabetes or not, it cannot be changed.

It is best to research annuities before retirement, then compare annuity rates, and make a decision at retirement.

I have diabetes complications as well as diabetes, what does this entitle me to in terms of annuities?

If you have diabetes complications caused by your condition, you may be eligible for further enhancements relating to your condition.

An impaired health annuity can provide a far more significant retirement income than a conventional annuity.

What conditions would qualify me for an enhanced or impaired annuity?

The following medical conditions are likely to qualify a pension holder for an enhanced or impaired annuity:

  • Regular cigarette smoker
  • Diabetes
  • Heart Attack
  • Chronic Asthma
  • Multiple Sclerosis
  • Stroke
  • High Blood Pressure
  • Cancer - lung, breast , bowel, pancreatic, liver
  • High Cholesterol
  • Overweight
  • Digestive or Bowel Complaint
  • Bladder or Liver Complaint
  • Dementia
  • Emphysema
  • Secondary malignant cancers
  • Chronic heart disease
  • Some primary malignant cancers
  • Kidney disease with ongoing dialysis
  • Chronic Lung Disease
  • AIDS
  • Stroke with ongoing support needed for normal living
  • Multiple Sclerosis, permanent wheelchair support
  • Motor Neurone Disease
  • Hodgkin's Disease
  • Parkinson's Disease
  • Alzheimer's Disease

Getting a GP's report to qualify for an enhanced annuity or impaired annuity

When it comes to buying an enhanced annuity or impaired annuity, the insurance company or pension company will often request a report from a General Practitioner.

The GP will then provide details of the illnesses in order for the company to start payments at an enhanced rate. Generally speaking, the worse the medical conditions the higher the annuity rate offered.

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