Factors Responsible For Varying Annuities Rates

Dealing with annuities rates can be slight confusing business. Apart from the fact that these rates change according to gender and age, the same individual may get varying annuities rates from various providers. So it is essential to know the factors that affect the rates of annuity that the providers may have offered any person. Provided below are the major factors affecting rates of annuity.

• Gender: Several times life expectancy is the basis of annuities rates. Women have longer life expectancy than men. This is why men are offered higher rates by the providers.

• Smoking and alcohol intake: Smokers can be entitled for specialized “smoker” annuities. Depending upon the smoking amount and for how long these individuals are smoking the annuities rates are decided. Moreover, smoking can be cause of several probable life threatening diseases and medical conditions. Again, individuals who exceed the maximum proposed alcohol intake daily are potentially entitle for certain increased annuities.

• Postcode: This may be surprising but is true. These day providers even vary annuity rates on the basis of your post code. Undertaking thorough research have revealed the fact that individuals living in poor conditions are likely to have shorter life. Again those living in affluent areas of the nation will certainly get maximum facilities and live longer than the poor. Due to this reason few of the annuity providers have started taking this into account and offers annuities in increased rates to individuals living in such areas where life expectancy is lower than other areas.

• Medical Conditions: There is a complete list of medical conditions that may influence eligibility for increased annuity rates. If individuals have any prevailing medical condition at all, it will be wise to consult an expert to know whether they are eligible for higher annuity rates.

It is always recommended to undertake a good market research before opting for any financial product.