Types of Annuities
You need to know that there are many different types of annuities to choose from. It is very important that you purchase the right annuity, especially if you suffer from ill health or if you are a smoker or if you need to make provision for a spouse. You only make this purchase once so it needs to be the best you can get.
Lifetime Annuity
This is a generic term, covering the annuities described below. You can add different annuity options depending on your particular needs and circumstances.
Conventional Annuity
This provides a guaranteed income for life and is for those people who are of good health and non-smoking. Please use our online quote facility for some example quotes.
Single Annuity
This is the simplest type of annuity and it pays out to an individual (the "annuitant") regularly until the annuitant dies.
Annuities for those with ill health
An Enhanced Annuity or Impaired Life Annuity.
These annuities are designed to pay you more income if you are suffering from ill health, or if you are a smoker. Many hundreds of medical conditions can be considered, with even mild conditions qualifying for these higher annuity rates. Please ask us to run some sample quotes for you.
Investment related annuities
With profits annuity
This type of annuity pays an income for life with the potential for growth above inflation over the long-term. It does contain a degree of risk as the level of income can vary.
Unit linked annuity
This is similar to a with profits annuity but with greater risk, as it invests in units in investment funds. The level of income can vary.
Other annuities
Temporary or short-term annuity
These annuities allow individuals before age 75 to use part of a pension fund to buy a fixed-term annuity lasting up to five years. They can choose annuity options in much the same way as basic annuities. You will still have to purchase an annuity or income drawdown option by the age of 75.
Capital or value-protected annuities
These will pay a lump sum on the death of the annuitant, equivalent to the difference between the original purchase price and total annuity payments made. The lump sum is taxed at 55%. They are only available until age 75.
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