The insurer is working with Hargreaves Lansdown and Positive Solutions to pilot a product called annuity plus, which has fast-track underwriting based on five common health risk to give an enhanced benefit of up to 12 per cent against a conventional annuity.
Annuity plus will consider whether a policyholder smokes, has high blood pressure, high cholesterol, their height and weight, whether they suffer from diet-controlled diabetes and also take into account their postcode when determining the additional annuity income they may be entitled to.
Head of annuity product development for L&G’s individual annuities business Tim Gosden says: “Independent research we conducted with advisers earlier this year highlighted that many IFAs viewed the current enhanced annuity process as complex and time consuming.
“In addition, the medical information required can mean asking their clients difficult personal questions.”
Hargreaves Lansdown pensions analyst Nigel Callaghan says: “It’s crucial that retiring investors squeeze out as much value from their pension savings when they buy an annuity as possible.
“Product developments from insurers need to find imaginative ways to allow more investors to do this.”
Positive Solutions marketing director Keith Gilmour says: “Positive Solutions is delighted to be piloting the Legal & General enhanced annuity proposition which offers the potential for higher retirement income for the right clients.
“The streamlined application process and L&G’s personal case management for all Positive Solutions annuity applications will be particularly welcomed by our adviser partners.”