'Live long and prosper'

Money Marketing, 17th January 2008, by Nicola York.

'New company Life Trust has set up the longevity income plan which aims to provide a rising income as a client gets older.

When an investor takes out the lump-sum policy, their money is invested in a choice of nine funds from firms including New Star, Gartmore and M&G.

Once the policyholder reaches a specific income start date, the plan pays out anually for a maximum of 20 years on the investor's birthday. Every year, additional units will be allocated to the planholder.

These units arise from the redistribution of the investment funds previously held by planholders who have died during the previous year.

Chief executive Andy Briscoe says: "The plan will address one of the key issues facing everyone today - how to finance a longer life."'