Partnership has launched a new life annuity for smokers .
The monthly income purchased life annuity (PLA) will pay an average of 6.5 per cent per annum for people aged 60 to 65 who have smoked at least ten cigarettes a day for ten years. There may be a higher rate for people who are older.
According to Philip Brown, head of retirement and care product development at Partnership, independent financial advisers and their customers had asked for such a product to be made available. It will be accessible to anyone that has a lump sum available to invest .
Mr Brown said: “Products that guarantee income are more appropriate than ever in a world of volatile investment markets .” Partnership offers financial products for people with health conditions and it covers a range of illnesses from hypertension to heart failure and cancer . Partnership claims to be the only company with its own proprietary underwriting manuals and mortality data in that area.