Legal & General Annuities, how do they compare?Posted by in Annuities
Legal & General is one of the UK’s most well recognised insurers. Trading since 1836, Legal & General is also a leading provider of Annuity products.
Legal & General offers a traditional Lifetime Annuity allowing you to add the usual options such as spouse’s pensions, guaranteed rates, and indexation, at a fixed rate or in line with the Retail Prices Index (RPI). In addition Legal & General allows you to choose from a range of payment frequencies, including monthly and annual payments, both in arrears or advance.
Legal & General also offers Enhanced Annuities to those people whose life expectancy may be shortened by health or lifestyle issues. Relatively minor health issues, which are managed on a day to day basis, such as raised blood pressure, high cholesterol or diabetes, often qualify for an Enhanced Annuity, which could see the level of your income rise considerably. Those people who have suffered from more serious illnesses, such as cancer, strokes or heart attacks are almost certain to qualify for an Enhanced Annuity. Lifestyle issues which may mean you qualify for an Enhanced Annuity include smoking, excessive drinking or being overweight; again the increase to your annual income can be significant.
Annuity experts always recommend that an Enhanced Annuity is considered so that any health issues can be taken advantage of. Doing this before an Annuity is taken out is vital; once an Annuity has started it can never be changed.
Legal & General also offers Investment Linked Annuities and Income Drawdown contracts, however at present they do not offer a Fixed Term Annuity.
Legal & General’s annuity rates are generally competitive for standard terms, where an individual does not qualify for an Enhanced Annuity. However, for Enhanced Annuities Legal & General are rarely competitive, with companies such as Aviva, Partnership, Just Retirement and LV all generally offering better rates.
The varying levels of competitiveness demonstrate the importance of using your Open Market Option (OMO) when buying an Annuity to make sure you get the best possible deal. Remember, once you have bought an Annuity, it can never be changed. Click here for Legal & General Annuities
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