An impaired life or enhanced annuity is an annuity that pays you a higher income because you have or have previously had certain medical conditions.

Amongst the medical conditions that could result in a higher annuity rate are cancer, heart attack, stroke, asthma, high blood pressure and diabetes. You could qualify if you smoke regularly or are overweight. Medical health questionnaires and possibly a report from your doctor may be required before an improved level of income can be offered on your annuity. Once the annuity is set up it won't change, even if your health improves, so it's well worth looking into, as it is estimated that up to 40% of people could qualify.

Your partner’s health can also be taken into account if you want your annuity to include them too.