Partnership Life Assurance Company has announced the launch of the latest in its range of annuity products - a monthly income Purchased Life Annuity targeted at smokers.

It currently pays an average of 6.5% pa (for 60 to 65 year-olds who have smoked a minimum of 10 cigarettes per day for at least 10 years), but for older ages the rate could be significantly more.

Philip Brown, head of retirement and care product development at Partnership, said: Unlike the existing product, which can only be bought with the proceeds of an authorized pension scheme, the Purchased Life Annuity (PLA) is available to anyone with a lump sum to invest for income.

Products that guarantee income are more appropriate than ever in a world of volatile investment markets. As interest rates are projected to fall, it is clearly worth considering products such as this PLA since it provides a guaranteed rate of return for life.