The Inland Revenue are yet to approve Norwich Union and the Prudentials cashback and annuity products.
A meeting took place earlier this year between the Norwich Union and the Inland Revenue but the talks remain confidential.
Under current legislation, insurers are unable to offer annuities that pay back the remainder of the fund after death. Guaranteed annuities which continue to pay an income for a defined period after death, typically five and ten years, are available but these are in instalments payed to the deceased's estate.
Prudential is looking to develop an annuity product where the residual funds are paid as a lump sum and allowing the estate to be closed.
Prudential has said that it is in advanced stages of developing its cashback annuity but is awaiting approval from the Inland Revenue.
Rates for the cashback annuity expect to offer a 60 year old male with £100,000 sum an annual income of £7,375.