Corporate Savings Plan
The Product:
- Savings plus life cover arrangement.
- Provides a return on investment.
- Financial protection for dependents in the event of untimely death.
- Requires no medical examination.
- Can be effected for a minimum period of 1 year.
Benefits:
- Maturity: Total amount accumulated in the policy holder’s investment account.
- Interest: Interested credited to the policyholder is an average savings rate of 3.5% per annum and an increase of 0.5% per annum to a maximum of 5%pa for policies that are on the books for more than a year.
- Death Benefits:
- Guarantee chosen sum assured plus Total amount in an investment account
- A waiting period of 3 months except for death by accident
- Optional Withdrawal Benefit: 50% of annual contribution after 1st year
- Made once in a year provided the account is left with a minimum balance equal to 1-year
- Surrender Penalty:10% of account balance if withdrawal is within the first policy year.
- Surrender penalty – 10% of accrued interest for withdrawal after the first year. During 1st year_ 90% of the balance in investment
- After 1st year, total balance in investment
Premium:
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Frequency: Monthly, Quarterly, Half-yearly and Yearly.
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Risk premium: Policyholder chooses the sum assured he wants and can afford which is paid annually a maximum of N 2 million. Risk premium charged at the rate of 10per Mille e.g:
Risk premium = Sum assured
N 1,000.00 - 100,000.00
N 2,000.00 - 200,000.00
N 3,000.00 - 300,000.00
N 4,000.00 - 400,000.00 etc. subject to a maximum of 2million
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The policyholder picks one the above-mentioned risk premium and the equivalent sum assured applies. The regular savings contribution can then be paid along.
E.g
Contribution: N 10,000.00
Risk premium: N 1,000.00
First premium: N11, 000.00
Subsequent premium: 10,000.00
Anniversary/ Renewal premium: 11,000.00
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Full savings premium allocated to investment account.