With an ordinary fixed annuity, I would need much less because an insurance company can provide income only during my lifetime (rather than into perpetuity), and they can diversify the uncertainty of my demise with other annuitants.

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However those who have medical conditions can also enjoy the advantages of a guaranteed lifetime income by applying for an enhanced annuity instead of an ordinary one.

BBC: Enhanced annuities: Who can benefit?

But when the appreciation and dividends come out of the annuity at the other end they are converted into ordinary income taxed at 35%.

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