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Pension problems
Pension policies are continuing to bring more grey hairs, rather than a sunny old age. A combination of the rocky Stock Market depressing fund values, and low annuity rates reducing pension income, means that it could hardly be a worse time to be cashing in a policy.
That means it's even more important than ever to get the best possible deal. Many people don't realise that they are not bound to take an annuity from the pension company they paid the contributions to, and they may get a much better deal by exercising an 'open market option' - going to a different insurance company with the fund that the first company has accumulated. This is not a complicated matter, but it's one which will benefit from independent financial advice to know all of the options.
It may seem a little morbid, but you can also get a better deal if your health is bad. If you are insuring your life, you can get a lower premium if your medical exam shows you are unlikely to be making a claim - if you are buying an annuity, you get a better income if the insurance company thinks it will not be paying it for such a long time. Again, it's worth taking advice from someone who knows the market and knows what sort of health issues are taken into account. And, once you have bought your annuity, you can change to a healthier lifestyle and try to live as long as possible!
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