Hi. i am 54 and my partner is 57.

Hi gordo15 and welcome to the forum.

This sounds like a Family Income Protection policy that pays out a monthly sum instead of a lump sum on the first death ot two lives assured. It is essentially a term assurance with a built in annuity on death. In fact you could simply arrange a term assurance policy with instructions to buy an annuity from the lump sum payable on death. However, I suspect that at your ages ( and even assuming that you are both first class life risks ) this will not be a cheap policy and even at a 3% yield per annum for the annuity, you would need life cover of around 1.4 Million to fund the kind of return you mention and that is without the index linking. I suggest that you contact an FSA registered financial consultant on this one!