Annuity Interview question.

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Just a quick question.

Now The Glorious Day has finally dawned, I want to convert my small free standing pension pot into a lifetime annuity.

My provider insists on an interview before they can act (I just want the maximum monthly payment for the rest of my life- give it to me now! ), and I need to have my height weight, blood pressure and health/lifestyle summary ready.

Obviously I cannot make any false statements, but do I need to subtly suggest that I'll be lucky to last another 5 years (I could easily drink more alcohol for a while), rather than that I will do everything in my power to live long enough to be in profit?

Cynically, I expect I'll get a better offer if they think I'm going to die early rather than later.

leosayer

You need to do nothing more than answer their questions honestly with facts. Listen to the exact wording of each question and only answer that.

If you don't know the answer to something then say you don't know.

Some reading material: https://www.legalandgeneral.com/retirement/pension-annuity/guides/enhanced-annuities/

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leosayer said:

You need to do nothing more than answer their questions honestly with facts. Listen to the exact wording of each question and only answer that.

<snip>

Thanks, good advice and easy to forget. (And blurt out something)

I hope they don't want me to get a Doctor's report just to access a few extra pounds a month from my own money, we aren't talking about a fortune, I naively thought it would be just ticking a box and accepting/rejecting an offer.

MyRealNameToo

facade said:

Just a quick question.

Now The Glorious Day has finally dawned, I want to convert my small free standing pension pot into a lifetime annuity.

My provider insists on an interview before they can act (I just want the maximum monthly payment for the rest of my life- give it to me now! ), and I need to have my height weight, blood pressure and health/lifestyle summary ready.

Obviously I cannot make any false statements, but do I need to subtly suggest that I'll be lucky to last another 5 years (I could easily drink more alcohol for a while), rather than that I will do everything in my power to live long enough to be in profit?

Cynically, I expect I'll get a better offer if they think I'm going to die early rather than later.

Yes, the questions are to determine if either medical or lifestyle suggests you have a materially impaired life expectancy and therefore entitled to an enhanced annuity. Heavy drinker, high BMI, long term smoker, prior heart attacks, strokes etc are more likely to make you eligible for enhancement but obviously answering questions fraudulently (aka untruthfully) will mean that you end up with nothing if caught. 

DRS1

Just be aware that you will need to give them your doctor's details and authorise them to get a report from the doctor.  That report may be something they only get after your annuity has started and they will say that they can reduce the annuity if the report does not bear out anything you have told them.

Moonwolf

I’m going through the process at the moment and have completed a detailed form and agreed to a doctors report.

Everything I have said is on my medical record, I told my GP I drink 9-14 units a week so that is what I put on the form.

Silvertabby

Are you married?  If so, expect to be asked if you want a dual life annuity.

Sadly, there are likely to be many women out there who still don't realise that their husbands took took out 'the maximum possible monthly amount'. Until he dies, and they are left with nothing.  

Alexland

facade said:

My provider insists on an interview before they can act 

Rather than stretching the truth your time might be better spent shopping around and comparing annuity rates as your existing pension provider may not be offering best value. I read somewhere that annuity providers tend to do follow-up checks on around 1/3 of applications to ensure they are not being mislead.

dunstonh

My provider insists on an interview before they can act (I just want the maximum monthly payment for the rest of my life- give it to me now!  ), and I need to have my height weight, blood pressure and health/lifestyle summary ready.

That is understandable given the number of fines that were issued in the past for not asking those questions.

Its usually better to get an IFA to do an annuity quote and not your existing provider.  The exeception would be if there are guaranteed annuity rates.

Obviously I cannot make any false statements, but do I need to subtly suggest that I'll be lucky to last another 5 years (I could easily drink more alcohol for a while), rather than that I will do everything in my power to live long enough to be in profit?Some applications are sample checked with your GP.  Some will request a nurse visit to verify the information.  Some will accept what you tell them.   It often depends on the level of uplift.   

Annuities are an insurance contract.  Being caught on a fraudulent application would mean you have to declare it on any future insurance applications for the rest of your life.   That would mean adding zeros to your home insurance and car insurance premiums.

As it happens, nothing you suggest will make any difference to the premium.   The health questions are box fills with no free text taken into account.   There are free text boxes but they are not used in 99% of annuity quotes.

Albermarle

facade said:

Just a quick question.

Now The Glorious Day has finally dawned, I want to convert my small free standing pension pot into a lifetime annuity.

My provider insists on an interview before they can act (I just want the maximum monthly payment for the rest of my life- give it to me now! ), and I need to have my height weight, blood pressure and health/lifestyle summary ready.

Obviously I cannot make any false statements, but do I need to subtly suggest that I'll be lucky to last another 5 years (I could easily drink more alcohol for a while), rather than that I will do everything in my power to live long enough to be in profit?

Cynically, I expect I'll get a better offer if they think I'm going to die early rather than later.

I am not clear why cynicism comes into it.

It is their business to  calculate risk factors/longevity, when deciding on their offer.

MyRealNameToo

Albermarle said:

facade said:

Just a quick question.

Now The Glorious Day has finally dawned, I want to convert my small free standing pension pot into a lifetime annuity.

My provider insists on an interview before they can act (I just want the maximum monthly payment for the rest of my life- give it to me now! ), and I need to have my height weight, blood pressure and health/lifestyle summary ready.

Obviously I cannot make any false statements, but do I need to subtly suggest that I'll be lucky to last another 5 years (I could easily drink more alcohol for a while), rather than that I will do everything in my power to live long enough to be in profit?

Cynically, I expect I'll get a better offer if they think I'm going to die early rather than later.

I am not clear why cynicism comes into it.

It is their business to  calculate risk factors/longevity, when deciding on their offer.

Not exactly, thats why the Pru and a few other annuity providers were fined and forced to go through the TRASP redress process as they had failed to identify those with impaired life expectancy from direct sales and not told them enhanced annuities were available. 

There is more nuance to it but at a high level accurate enough

https://www.mandg.com/news-and-media/press-releases/life/2019/30-09-2019