Life Trust Insurance has launched its first product, the Longevity Income Plan, to deal directly with the financial issues arising from increasing longevity.
Life expectancy for a man has increased by nine years over the last 50 years. During their retirement years, people also face a period of declining income, capital erosion and increasing costs. With this in mind the Longevity Income Plan is a lump-sum investment designed to provide an individual with a rising income the longer they live.
The Longevity Income Plan (LIP) provides a rising income the longer a person lives through a long term investment strategy and the allocation of additional fund units to plan holders annually on their birthday.
When an individual takes out a plan their money will be invested in a choice of nine funds from fund managers to suit the investor’s risk profile. The Longevity Income Plan will be sold through IFAs, with a number of large networks and specialist firms already showing a keen interest. The company has claimed that the plan’s potential rising income trend could provide more money when people are most likely to need it, and potentially a significant boost to the value of their estates if they don’t.
Andy Briscoe, chief executive of Life Trust Insurance, said: There are more than 11 million retired people in the UK, and estimates are that one in three people are already outliving their finances. The Plan is a genuinely innovative product that will complement the orthodox methods of saving for one’s future and help support our quality of life as we all grow older.