Life expectancy disparity leads to debate on postcode-based products

Figures from the Office for National Statistics show wide disparity in life expectancy for 65 year olds across the country, which will have implications for the quity release market, reports Mortgage Solutions (27/11/06).

Men aged 65 can expect to live 16.6 years and women 19.4, however, regional variations show that in Kensington and Chelsea men expect to live to 82.2 while in Glasgow it is 69.9.

Some providers already offer deals on impaired lives.

Jon King, chief executive of Safe Home Income Plans, said “I am not aware of an annuity that pays more on postcode. You need an impairment to have an impact on loan-to-value rates. The same surely should apply for equity release products. It is not possible to devise products on a postcode basis.”