NPI is aiming for £200m-£300m of business a year with its new no-load with-profits bond.
The bond offers an initial bonus of 8.5 per cent a year which includes the annual management charge. The bonus rate includes a special annual bonus of 2.5 per cent.
There is no bid/offer spread and the allocation rate is at least 100 per cent, rising to 101 per cent for investments over £250,000. Minimum investment is £10,000.
There is an early withdrawal charge in the first five years. The penalty is 9 per cent in the first year, decreasing by two percentage points each year.
Commission is 5.25 per cent or 3 per cent initial with 0.5 per cent renewal.
NPI was the first life office to set up a with-profits bond with no bid/offer spread. It produced a similar deal last year, raising over £200m, and was followed by others, including Scottish Mutual and Commercial Union.
NPI reserves the right to use a market value adjuster. No MVA will be used for annual payments of up to 10 per cent of the original investment and on withdrawals on the 10th anniversary of the bond.
Assistant product manager Su Harwood says: "Our research shows that many of these investments have been part of retirement planning. We believe the competitive terms will commend it to IFAs advising on retirement needs."
The plan is open-ended but it is aimed at medium to long-term investments of over five years.