The rise of the enhanced annuity has been given a further boost with the launch this week of a new product from LV.

The insurer is hedging its bets by making the product with profits, exchanging the guarantee of a normal annuity for the opportunity to invest more in equities. John Perks, customer solutions director, said: “We believe in the enhanced market that people are still living a relatively long time, so we think it’s worth having that flexibility.”