Enhanced annuity rates provider to launch new annuity. MGM Advantage is to officially launch its long-awaited asset-backed annuity product next week. As reported back in February, the enhanced annuity provider completed its important task of fine-tuning a flexible asset-backed annuity product in January and is now ready to launch it to market. It is designed to be cheaper than current asset-backed annuity products such as with profits annuities and unit-linked annuities, and the offering is targeted at a customer base similar to that served by enhanced annuities.
Aston Goodey, director responsible for sales and marketing for the enhanced annuity provider, said in January that initial feedback for the new product had been “phenomenal” and “highly encouraging”. MGM Advantage had planned to launch the product in the summer of 2009, but this launch was postponed in order to carry out futher testing and to achieve Financial Services Authority (FSA) approval.
In addition, LV, another enhanced annuity rates provider, has recently launched a fixed term annuity, becoming only the second company in the UK to do so. It offers clients a range of income levels for a fixed period of anything between 3 - 25 years (20 years from April 6 this year). Living Time, which pioneered the first fixed term annuity product in the UK, welcomed the move but claimed LV’s offering was a bit of a carbon copy of theirs. More information on both these new products will follow shortly.
