This individual could use a lump sum to purchase an annuity from an insurance company or buy an annuity bond
(which pays coupons only and has no principal repayment) directly from the financial markets; both will yield a constant income stream for T periods.
The survivor bond is an annuity bond
with a stochastic maturity and decreasing coupon payments linked to the realized mortality experience of a selected birth cohort.
Products which can yield higher returns come under the banner of annuity bonds
, products which are linked directly to investments in equities or through investment trusts and unit trusts.