Addition of health details for Annuity triggers Underwriter referral

grn99

Was doing quite well with getting annuity quotes but today SW wanted to speak to wife about her health history (my pension, but joint life annuity being quoted for)... So rather than come back with quotes as in the last few days, I'm told it's being referred to underwriting.

Now I always thought annuities to be the inverse of life assurance, where health history didn't work against you, but it seems some can still be problematic. Apparently they email back eventually, but in the meantime the rates offered can alter and cannot be locked in as it is being referred.

I know I cannot change their decision, but is there a chance they will either decline the risk or give a rate that is unattractive?

Marcon

grn99 said:

Was doing quite well with getting annuity quotes but today SW wanted to speak to wife about her health history (my pension, but joint life annuity being quoted for)... So rather than come back with quotes as in the last few days, I'm told it's being referred to underwriting.

Now I always thought annuities to be the inverse of life assurance, where health history didn't work against you, but it seems some can still be problematic. Apparently they email back eventually, but in the meantime the rates offered can alter and cannot be locked in as it is being referred.

I know I cannot change their decision, but is there a chance they will either decline the risk or give a rate that is unattractive?

I think you might have misunderstood. Poor health might mean lower life expectancy, which in turn means a better rate for an annuity, because the provider might not have to pay it for as long as someone in good health.

grn99

Marcon said:

grn99 said:

Was doing quite well with getting annuity quotes but today SW wanted to speak to wife about her health history (my pension, but joint life annuity being quoted for)... So rather than come back with quotes as in the last few days, I'm told it's being referred to underwriting.

Now I always thought annuities to be the inverse of life assurance, where health history didn't work against you, but it seems some can still be problematic. Apparently they email back eventually, but in the meantime the rates offered can alter and cannot be locked in as it is being referred.

I know I cannot change their decision, but is there a chance they will either decline the risk or give a rate that is unattractive?

I think you might have misunderstood. Poor health might mean lower life expectancy, which in turn means a better rate for an annuity, because the provider might not have to pay it for as long as someone in good health.

No, that was my understanding, but with nothing particularly outstanding health-wise, I'm surprised it's being referred and wondering why.

flaneurs_lobster

Marcon said:

grn99 said:

Was doing quite well with getting annuity quotes but today SW wanted to speak to wife about her health history (my pension, but joint life annuity being quoted for)... So rather than come back with quotes as in the last few days, I'm told it's being referred to underwriting.

Now I always thought annuities to be the inverse of life assurance, where health history didn't work against you, but it seems some can still be problematic. Apparently they email back eventually, but in the meantime the rates offered can alter and cannot be locked in as it is being referred.

I know I cannot change their decision, but is there a chance they will either decline the risk or give a rate that is unattractive?

I think you might have misunderstood. Poor health might mean lower life expectancy, which in turn means a better rate for an annuity, because the provider might not have to pay it for as long as someone in good health.

Standard Life sent someone round to my house after an annuity quote, wanted evidence that my partner smoked.

grn99

flaneurs_lobster said:

Marcon said:

grn99 said:

Was doing quite well with getting annuity quotes but today SW wanted to speak to wife about her health history (my pension, but joint life annuity being quoted for)... So rather than come back with quotes as in the last few days, I'm told it's being referred to underwriting.

Now I always thought annuities to be the inverse of life assurance, where health history didn't work against you, but it seems some can still be problematic. Apparently they email back eventually, but in the meantime the rates offered can alter and cannot be locked in as it is being referred.

I know I cannot change their decision, but is there a chance they will either decline the risk or give a rate that is unattractive?

I think you might have misunderstood. Poor health might mean lower life expectancy, which in turn means a better rate for an annuity, because the provider might not have to pay it for as long as someone in good health.

Standard Life sent someone round to my house after an annuity quote, wanted evidence that my partner smoked.

Yes, I can believe that; I'm just wondering what they may be seeking, when on paper we're almost too healthy for an annuity!! 

flaneurs_lobster

grn99 said:

flaneurs_lobster said:

Marcon said:

grn99 said:

Was doing quite well with getting annuity quotes but today SW wanted to speak to wife about her health history (my pension, but joint life annuity being quoted for)... So rather than come back with quotes as in the last few days, I'm told it's being referred to underwriting.

Now I always thought annuities to be the inverse of life assurance, where health history didn't work against you, but it seems some can still be problematic. Apparently they email back eventually, but in the meantime the rates offered can alter and cannot be locked in as it is being referred.

I know I cannot change their decision, but is there a chance they will either decline the risk or give a rate that is unattractive?

I think you might have misunderstood. Poor health might mean lower life expectancy, which in turn means a better rate for an annuity, because the provider might not have to pay it for as long as someone in good health.

Standard Life sent someone round to my house after an annuity quote, wanted evidence that my partner smoked.

Yes, I can believe that; I'm just wondering what they may be seeking, when on paper we're almost too healthy for an annuity!! 

Is it a significant sum being used to purchase the annuity? May simply be that you've hit a house limit for quoting without oversight by the higher-ups.

grn99

flaneurs_lobster said:

grn99 said:

flaneurs_lobster said:

Marcon said:

grn99 said:

Was doing quite well with getting annuity quotes but today SW wanted to speak to wife about her health history (my pension, but joint life annuity being quoted for)... So rather than come back with quotes as in the last few days, I'm told it's being referred to underwriting.

Now I always thought annuities to be the inverse of life assurance, where health history didn't work against you, but it seems some can still be problematic. Apparently they email back eventually, but in the meantime the rates offered can alter and cannot be locked in as it is being referred.

I know I cannot change their decision, but is there a chance they will either decline the risk or give a rate that is unattractive?

I think you might have misunderstood. Poor health might mean lower life expectancy, which in turn means a better rate for an annuity, because the provider might not have to pay it for as long as someone in good health.

Standard Life sent someone round to my house after an annuity quote, wanted evidence that my partner smoked.

Yes, I can believe that; I'm just wondering what they may be seeking, when on paper we're almost too healthy for an annuity!! 

Is it a significant sum being used to purchase the annuity? May simply be that you've hit a house limit for quoting without oversight by the higher-ups.

No, just £310k which has been quoted on before.

MyRealNameToo

grn99 said:

Was doing quite well with getting annuity quotes but today SW wanted to speak to wife about her health history (my pension, but joint life annuity being quoted for)... So rather than come back with quotes as in the last few days, I'm told it's being referred to underwriting.

Now I always thought annuities to be the inverse of life assurance, where health history didn't work against you, but it seems some can still be problematic. Apparently they email back eventually, but in the meantime the rates offered can alter and cannot be locked in as it is being referred.

I know I cannot change their decision, but is there a chance they will either decline the risk or give a rate that is unattractive?

Everything you know about insurance is inverse when it comes to annuities...

All other insurance, small premiums but potential for a big claim or maybe no claim
All other insurance a realistic disaster scenario is a hurricane, earthquake, 10 ton truck bomb, pandemic

Annuities massive premium paid up front an dozens or hundreds of small claims, normally every month
RDS for annuities... a cure for cancer? A universal vaccination for all communicable deseases 

It's the only class of insurance where they want their policyholders to take risk, they're all for base jumping grannies etc. 

Ill health with annuities result in an improved rate not a worsened one as there is less chance of someone with heart failure weighing 25st and smoking 40 a day making it to 110 so the rates are uplifted 

It is inverse life insurance which is why the two go hand in hand because the risks offset each other... things that make us live longer is great for life insurers but terrible for annuity providers. Stuff that kills us off terrible for life but great for annuities. By writing both you balance things out, one of the largest reinsurers of annuities is a massive life insurer in the US who can offer low rates because of the diversification benefits. 

DRS1

It won't take too long with the underwriters - a few days (well 5 in my case).  And as pointed out you may get a better annuity rate (enhanced is the term they use).

Just be aware that if any of the health details change then it is back to the underwriters again (and yes you do have to tell them)

DRS1

Oh and if you take the enhanced annuity they may well be checking with your doctor at some point after the annuity has started and that check may lead to a change in the amount of the annuity..

grn99

DRS1 said:

It won't take too long with the underwriters - a few days (well 5 in my case).  And as pointed out you may get a better annuity rate (enhanced is the term they use).

Just be aware that if any of the health details change then it is back to the underwriters again (and yes you do have to tell them)

Yes that's I thought, once you're into the underwriting loop and comparisons become a lot trickier.