MetLife will launch a fixed term annuity which allows pensioners to switch to an enhanced or lifetime annuity before the end of the term.
The freedom income plan (FIP) will allow annuitants to move to another product should they become ill.
Dominic Grinstead, managing director at MetLife UK, said: "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."
The product is similar to the Next Generation annuity launched by rival provider Just Retirement in May.
Audio / Visual
Advisers and providers gathered at the Grand Connaught Rooms in London on 20 November to celebrate the ingenuity and the graft displayed in the protected product arena throughout the last 12 months. These awards are growing in popularity every year, and our congratulations go to the winners and highly commended.