Underwriting firm, Niger Insurance plc, has disclosed plans to introduce life annuity product into the market soon, as part of efforts to ensure that retirees in the country are self-sufficient financially and live comfortably after their active working life.
This is in line with Pension Reform Act 2004, which empowers insurance companies doing life business to offer annuity plan for retirees under the current contributory pension scheme(CPS), managed by Pension Fund Administrators (PFAs) and supervised by the National Pension Commission (PenCom).
Kola Adedeji, managing director, Niger Insurance plc who disclosed this in Lagos stated that the National Insurance Commission (NAICOM) has given the insurance firm an approval to roll out the life annuity product.
As Section 4(1) of the Pension Reform Act 2004 stipulates that a holder of a Retirement Savings Account (RSA) upon retirement, shall utilise the balance standing to the credit of his RSA for either programmed monthly withdrawals or annuity for life purchased from a life insurance company with monthly payments, he said Niger Insurance believes that the retirees deserve to truly enjoy their golden years with regular income for life.
While there are different types of annuities in the market, he said since it is only life annuity which provides guaranteed monthly payments for as long as the retiree is alive, that is recognised by the Pension Act, and this exactly is the type of annuity the insurance firm intends to offer the pensioners.
Adedeji added that while the life annuity product will further assist the underwriting firm to improve on its fortunes in the market to the delight of its shareholders, the organisation is more concerned with rendering qualitative services to the retirees as a socially responsible corporate citizen.
The Niger Insurance boss noted that the plan offers policyholders the opportunity to save towards a deferred income, thereby providing a unique opportunity for retirees to earn a guaranteed regular income for life.
He also allayed the fears in the minds of most workers that their savings might not be enough to cater for their needs at retirement, informing that Niger Annuity Plan will offer an income the holder cannot outlive no matter what happens in the future.
In line with Niger Insurance’s tradition to ensure easy and prompt payment of benefits to its policyholders, he maintained that retirees who buy life annuity from the insurance firm can be rest assured that they will get their entitlement as and when due.
He emphasised that the company’s resolve to ensure prompt payment of benefits to policyholders made it to open a dedicated account solely for claims and commission payment to prevent any undue delay in claims administration and settlement.
Adedeji also reassured clients and other stakeholders that the underwriting company was being reengineered for better service and more innovative products which will better meet the needs of the insuring public and endear insurance to them.