What is an enhanced annuity?
An enhanced (or impaired-life) annuity pays a higher income to people whose health or lifestyle is likely to shorten their life expectancy. Because the insurer expects to pay out for fewer years, it offers a better rate. Conditions as common as high blood pressure, high cholesterol, diabetes, being a smoker or even being overweight can qualify you for a meaningful uplift.
| Factor | Typical income uplift | Leading providers |
|---|---|---|
| Smoker (10+ a day) | +10% to +20% | Just, Canada Life |
| Type 2 diabetes | +10% to +25% | Just, Legal & General |
| High blood pressure / cholesterol | +5% to +15% | Aviva, Canada Life |
| Serious conditions (cancer, heart) | +20% to +30%+ | Just (impaired-life specialist) |
| Overweight (high BMI) | +5% to +15% | Just, Legal & General |
How much more could you get?
On a £100,000 pot, a standard single-life level annuity at 65 might pay around £7,200 a year (7.2%). With a moderate enhancement of 15%, that rises to roughly £8,280 — an extra £1,080 every year for the rest of your life. For someone with a serious condition, a 30% uplift would mean around £9,360, a transformative difference.
Why so many people miss out
The biggest mistake is buying a standard annuity without declaring health and lifestyle details, or simply accepting your pension provider's default offer. Always complete the health and lifestyle questionnaire fully and shop the whole market — enhanced specialists like Just are unlikely to be your existing pension provider.
Verdict
Just is the standout enhanced annuity provider, particularly for impaired-life cases, with Canada Life, Legal & General and Aviva strong for milder conditions. The rule is simple: declare everything and compare every insurer. Read our enhanced annuity guide for qualifying conditions, compare standard rates in our best annuity rates guide, and weigh drawdown in our best drawdown providers guide.