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MetLife launches new fixed-term annuity

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MetLife is to launch a fixed term income annuity product as part of its expansion strategy.

The Freedom Income Plan’s (FIP) most innovative feature is the Freedom Clause which gives clients the flexibility to transfer to another retirement product before the end of their selected term should they become ill and qualify for enhanced terms on  a lifetime annuity, or if the dependant attached to the plan should die. 
 
The MetLife FIP will also allow customers to defer purchase of a lifetime annuity, whilst taking out a  known level of income. Unlike general drawdown, it provides no investment performance risk and allows customers to reassess their requirements for their later years in retirement.  In addition, if a client is suffering from ill-health at maturity, they may be able to purchase a higher level of income.
 
The move underlines MetLife’s continued commitment to product innovation in the UK market and enables it to further develop its presence in the rapidly growing fixed term annuity market.
 
Expansion into this area is part of MetLife’s on-going IFA focused product strategy which has also included the introduction of its Protected Growth Bond, launched earlier this year.
 
Following its acquisition of Alico in 2010, MetLife has, since February 2011, been the main distributor of the Living Time product range, which includes the Fixed Term Annuity, the 75 Plan, the Income Plan and the Personal Investment Plan.
 
Living Time will continue to work with MetLife to support and promote this new and growing area of the retirement market as it builds towards the next phase of its development as part of a broader remit of developing its “Offer More Options” campaign.
 
Dominic Grinstead (pictured), Managing Director at MetLife Europe Limited UK, says: “The fixed term annuity market is a prime example of the innovation and flexibility that is needed in the UK retirement market.
 
“With the relaxation of the age 75 rule and continuing low annuity rates, consumers will be looking for more options at retirement.
 
“With MetLife’s enhanced Freedom Income Plan, I look forward to working closely with Kim Lerche-Thomsen.”

Kim Lerche-Thomsen, Chief Executive Officer of Living Time, says: “Living Time pioneered the fixed term annuity market in the UK and I am delighted that MetLife is to continue offering a fixed term annuity product.  I look forward to continuing to work with them and championing this important product area. For Living Time this is the start of the next phase of our development full details of which will be announced in the near future.”

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