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.
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Newer policies offer longer terms