When we talk about annuity, many people think it is for only those who have worked in the public service or corporate organisations, then wanting to retire.
That is not true. It is for everybody who anticipates longer life.
If you are looking forward to a longer life, then you will need to have an annuity plan, so that you would be in a position to earn from your investment throughout your life.
Therefore, whether you worked in a corporate organisation or an entrepreneur or self employed, you have the opportunity to plan for longevity, so that par- venture you have the opportunity to be blessed with old age you will have regular income from your annuity till when death comes.
George Onekhena, deputy commissioner for Insurance, Technical, National Insurance Commission (NAICOM) said plan for your tomorrow’ old age with life annuity.
Onekhena stated that longevity is a blessing of God and so it should not turn to a course because of lack of planning. “If you are blessed with old age and you die of hunger, you are the course. Buy annuity today,” the insurance expert advised.
Read also: Govt outlines $900bn investment plan for power, oil, gas in 30 years
What is annuity for life policy?
Annuity for Life Policy is a retirement instrument option for retiring employee or people offered by a Life Insurance Company.
Annuity for Life Policy is a type of annuity contract that provides, in return for a Lump sum, a monthly or quarterly payment starting immediately after retirement and continuing for the rest of the retiree’s life.
The contract is often purchase by retiring persons who want an income that is guaranteed to last for the rest of their lives, no matter how long that might be.
Annuity for Life Policy has the following benefits:
1. Annuity pays the retirees as long as he/she lives. Just imagine a Mandela example, i.e. if he had retired at age 50, because he lived for 94 years, he would have received annuity income for 44years after retirement till death.
2. Annuity for Life Policy has a guaranteed period of 10 years. The implication of this is that if the retiree dies a year after retirement and he/she has just received one year, the remainder of the retiree income for nine 9 years shall be paid to a named beneficiary.
3. Annuity for Life Policy is strictly regulated by government through National Insurance Commission (NAICOM). The books of each Life Insurance office are scrutinised periodically by government. Hence, no Life Insurance Company can mismanage annuity funds from retirees.
4. Annuity for retirees’ fund portfolio is audited annually by notable firm of Chartered Accountants and this create comfort for retirees as to the safety of the funds in the custody of a Life Insurance Company, the reports are submitted to government every year;
5. Annuity for retirees’ fund portfolio is valued each year by Actuaries of International repute to guarantee the solvency of the Life Insurance firm. This gives comfort as to the safety of retirees’ funds and the reports are submitted to government every year.
6. A retiree has the option of changing his retiree policy from one Life Insurance Company to another if for whatever reason after being with the first Insurance Company for two years.
Conclusion
From the foregoing, Annuity for Life Policy remains a veritable option for retiree who deserves a restful and enjoyable retirement. My message to the retiree is simple, how I wish I am at this stage of yours to make a choice for my retirement instrument, I will choose Annuity for Life Policy over and over again because I know that “as long as I live, I will continue to enjoy my steady income,” says an insurance analyst.
Modestus Anaesoronye
