Merchant Investors is launching a unit linked annuity on July 1.
The Growth Annuity Portfolio provides annuitants with a choice of almost 60 investment funds, including those of Fidelity, Framlington, Perpetual, Invesco, Aberdeen and Edinburgh Fund Managers.
The annuity allows them to choose the fund or funds that best matches their risk profile.
It has no bid/offer spread and has free switching between funds. There is also an option to convert to a conventional annuity if required.
For annuitants with larger funds there is a self-invested option.
Initial commission can be taken up to 2 per cent with an optional trail of up to 1 per cent.