LV= launches enhanced with-profit annuity

The new product accommodates protected rights and annuitants will be offered value protection, providing a return of unused capital to the client's estate should they die before the age of 75.

Advisers will also be able to obtain higher levels of income for customers who smoke or suffer from certain medical conditions.

Policyholders will receive an income linked to the performance of the LV= with-profit fund, providing them with the potential to receive additional income not possible under a conventional annuity, the company said.

According to LV= the new enhanced with-profit pension annuity has up to 25 per cent more income than a standard with-profit annuity and more than 1,400 medical conditions and lifestyle issues covered.

Income is guaranteed not to fall below the level applicable for a 0 per cent anticipated bonus rate (ABR) annuity, full or partial value protection is available on all annuities and protected rights annuities are accepted on 0 per cent ABR basis.

Matt Trott, head of annuities at LV=, said: "LV= strongly believes that customers should be entitled to a fair income in retirement based on their own personal circumstances, and offering an enhanced with profits annuity allows us to do this.

"We have developed a unique proposition in this market, where customers can link their annuity income to the investment performance of a respected mutual, and still obtain rates appropriate to their personal circumstances."