Liverpool Victoria has introduced a with-profits income bond with an initial bonus rate of 4.25 per cent.
The bond is for single premiums from £10,000 to £500,000 and has a minimum 100 per cent allocation for most clients.
It features an MVR-free guarantee on death and a two-year smoothing policy so investors are not affected by previous poor returns. Income is delivered through regular withdrawals.
Intermediary division director Rye Mills says the bond will appeal to those in or near retirement who need income but also want the reassurance of investing in a balanced portfolio.
The bond will invest in a portfolio chosen for its income-generating prospects, with around 30 per cent in high-yielding equities, 30 per cent in corporate bonds and 40 per cent in property.
Mills says: “Our new with-profits income bond reinforces our commitment to the with-profits bond market and aims to complement our existing growth bond by providing IFAs' income seeking clients with a higher rate of income when they need it.”