Smokers Annuities Pay Higher Rates

 

What Is A Smokers Annuity?

 

Unfortunately, as you already know, people who smoke have a statistically shorter lifespan than non smokers. A smokers annuity is basically an enhanced annuity, (an annuity that pays a higher rate of interest), designed especially for smokers. The annuity providers calculate the rate based on your life expectancy. The shorter they "expect" you to live, the shorter they have to pay you the money for, therefore the higher the rate they can offer you.

 

The general criteria is that if you have been smoking 10 or more cigarettes per day (or 3 ounces of tobacco per week) for the last 10 years, then you should be eligible for smokers annuity rates which can be as much as 30-40% higher than standard rates. The enhancement also increases with age so if you decide to take your annuity in your 70s as oppose to in your 60s, then you will be looking at a higher rate.

 

Before your annuity purchase can be completed, you will usually need to provide a General Practitioners Report (GPR) to confirm that you are a smoker along with any other health concerns.

 

Also if you have any other health concerns such as diabetes, obesity, heart conditions and many more, then you could be entitled to a further enhancement on the annuity rates.

 

It is worth mentioning that if you only smoke cigars or a pipe then you will more than likely not be considered for smokers annuity rates but double check with your adviser or the annuity provider to confirm this.

 

Call Us On 08000 936399 Or Use The Quick Quote Form On The Right To Source The Best Smokers Annuity Rates

 

 

My Partner Smokes But I Don't So Will We Still Get Smokers Annuity Rates On A Joint Annuity?

 

The short answer is yes, if you opt for a joint annuity and one of you smokes but the other doesn't then you should be eligible for enhanced rates. Obviously the decision will be based on your individual circumstances so you should speak to an adviser for advice specific to your individual circumstances.

 

 

What Happens If I Quit Smoking After Taking Out The Smokers Annuity?

 

Nothing! If you give up smoking after taking out the enhanced annuity then the rate and therefore your retirement income, will remain the same.

 

This fact should serve as a reminder that your annuity purchase is a one time purchase and once the deal is done then there is no going back so it is crucially important that you take the time to compare the open market and always speak to an adviser who can help you find the best deal for your individual circumstances. 

 

 

I Think A Smokers Or Enhanced Annuity Might Be Suitable For Me - What Are The Next Steps?

 

Speak to an adviser. It might at first appear relatively simple to compare the annuity market by looking at the rates on comparison sites but these advertised rates are only based on extremely basic details. When you actually start applying for full annuity quotes, you will probably find the rates will vary greatly.

 

An experienced annuity adviser knows the market and the providers, so they are able to discuss with you, your individual circumstances and requirements before accurately comparing the open market to source the best deal. A good adviser can also look at your entire financial position and will be able to advise on transferring existing pensions or how best to invest the tax free lump sum to maximize your retirement income.

 

An adviser will also handle all the complex paperwork meaning the only thing you have to do is attend your appointments and speak to your adviser and this can be done either in person or over the phone.

 

Call Us On 08000 936399 Or Use The Quick Quote Form On The Right To Source The Best Smokers Annuity Rates