Annuity Plan

Do you have exciting plans for your retirement? It may be years away or just around the corner, in either case, how you will spend your retirement depends on how well you plan.

An Annuity Plan from AIICO Insurance can help protect you against the possibility of outliving your financial resources in retirement. In addition, the policy provides a lump sum benefit in the event of the policyholder’s death.

Benefits include:

  • A guaranteed regular income after retirement
  • Flexible annuity plans ranging from immediate annuity plans to deferred annuity plans
  • Surrender values for deferred annuities after one year
  • A spousal annuity option of 75% of the original annuity after the death of the annuitant
  • Tax relief on contributions payable in order to reduce tax liability
  • You can choose your earning at retirement and fund it.
  • A multiple of 5 times of your earning as death benefit.

The types of annuity are:

1. Deferred Annuity:

This plan encourages self-discipline by saving for the rainy day. You can determine your earning at retirement and fund it effectively. There is a death benefit of a multiple of 5 times annual earnings when he becomes an annuitant.

Features:

  • Opportunity to save towards a deferred regular annuity.
  • Lump sum or Annual premium payment can be applied for deferred regular annuity.
  • Death benefit payable if it occurs during deferment.
  • No medical Examination required.
  • Target Income at retirement can be flat or increasing at 5% or 10% annually.
  • A retirement plan.
  • Premium Payment is flexible (i.e annual or single for deferred annuity)

Benefits:

  • Guaranteed regular income
  • Flexible Annuity Plan
  • Tax relief on contributions to reduce tax liability.
  • Survival at retirement: Regular income till death guaranteed for 10 years and thereafter guaranteed for life.
  • Death benefits payable if it occurs during and after deferment.
  • Surrender value options for deferred annuity after one year.
  • Annuitant’s life Assurance covers option.

Premium Frequency:

Annual or Single

Notes:

On death of the policyholder before commencement of annuity payment, all premium paid are refunded with interest compounded of at least 3% per annum.

On death of the annuitant after annuity payment commences, a lump sum of five (5) times the annual annuity at the point of death together with any balance resulting from guarantee becomes payable.

2. Immediate Annuity

This can be taken if you have a bulk sum and want to receive your earnings immediately. This forestalls the risk of frivolous spending and secures a source of income when one is weak until death.  

Immediate annuity includes option for spouse, where your spouse continues to enjoy 75% of annuity benefit after the annuitant’s demise.

Also available is the multiple of 5 annual annuity as death benefit payable to the beneficiary or estate of the annuitant at death.

Who purchases this cover?

Anyone planning for retirement. Also helpful for retirees wishing to supplement their pensions.

About Us

AIICO Insurance Plc., is the leading life insurer in Nigeria.

Founded in 1963, AIICO provides life and health insurance, general insurance, investment management and pension management services as a means to create and protect wealth for individuals, families and corporate customers.