Over the past five months our Enhanced Annuity customers received an average uplift in retirement income of 10.4%. Some customers benefited from a very significant 25% increase in their retirement income and one customer has been quoted an enhancement in income of over 80% using our online quotation software.
The innovative Enhanced Annuity product recognises that not all pension customers have the same medical history or expected lifespan and so it offers better value to customers who have experienced poor health. The product caters for a wide range of medical illnesses and conditions as well as specific lifestyle factors. There is no upper limit on the level of enhancement available.
Our Enhanced Annuity product is based on an innovative online system that allows financial advisers to bring customers through all the requirements to assess their full health picture. If clients meet the criteria (and their GP can subsequently verify this information) they can qualify for an enhancement.
Based on Enhanced Annuity policies sold to date the most common medical conditions presented include; heart conditions, diabetes, high blood pressure, high cholesterol and cancer. The main lifestyle issues include being overweight or underweight and a history of smoking:
• 40% of customers have qualified for increased retirement income as a result of medical reasons alone
• 33% for lifestyle reasons alone
• 27% of customers qualified for enhanced income for both medical and lifestyle reasons.
Speaking about the take-up of the Enhanced Annuity product, David Harney, Managing Director, Irish Life Corporate Business said: “As 2015 progresses we expect to see more retirees benefiting from higher income through an Enhanced Annuity as we roll out our innovative system to more advisers across Ireland. Currently up to 54%** of UK retirees benefit from increased income through an enhanced annuity and we believe we’ll head towards that figure in the medium term. One of our key objectives over 2015 is to increase the percentage of Irish customers benefiting from the product. The average enhancement to date is over 10% which can make a big difference to your retirement income. Indeed, some of our clients received a 25% enhancement in income as they had a range of medical conditions.”
* Source Reinsurance Group of America (RGA) based on UK industry data September 2014
**according to Reinsurance Group of America (RGA) based on UK market statistics September 2014
There was a great media response to the article, with plenty of interest generated. Take a look at what some of the various media outlets had to say on our website.
