Volumes of enhanced annuity product sales have boomed in recent years, according to latest research, rising from £3,019 million in 2011 to £4.48 million 2012.
Demand for the products, which provide pensions to people whose medical conditions or lifestyles mean they have a lower than average life expectancy, have increased considerably over the past ten years.
Figures show that the total value of sales during 2002 stood at £651 million; however, this figure had more than doubled within six years to £1,444 million during 2008.
Over the course of 2011, total sales of enhanced annuities increased by 49%.
Mike Williams of Towers Watson, which conducted the research, said: "Despite the latest record level of sales by volume, enhanced annuities are still only around 20% of the total annuity policies sold.
"The current range of conditions and lifestyle factors that can lead to enhancements suggests a greater proportion of retiring consumers could benefit."
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