Friends Life has launched an annuity underwritten on savers' lifestyles, rather than specific medical conditions, in a bid to compete on the open market.
The Friends Lifestyle Annuity is part of the insurers' plan to enter the at-retirement market, which it has been developing since its restructure from Friends Provident and Axa (IFAOnline, 22 November 2011). Previously, Friends Life only offered annuities to existing defined contribution (DC) plan customers, of whom only 75% bought open market option (OMO) products. It now intends to compete with standard rate annuity providers, offering rates tailored for people who do not have specific medical conditions, but whose lifestyle may affect their life expectancy. Friends Life retireme...
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