AIICO insurance Plc commanding lead in life and general businesses and in this peculiar narrative annuity payment, has cleared the record of commitment to the wellbeing of annuitants with a total N52.6bn paid in eight years.
The amount which covers 2019 to 2023 is broken down thus: 2019 – N5.2 bn; 2020 – N6.0 bn; 2021 – N6.2 bn: 2022 – N7.8 bn and 2023 – N12.6 bn.
The stats were laid bare at a one-day training workshop organised by the underwriting firm for members of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos. Mr. Joseph Ogedengbe, Annuity Product Manager, who defined annuity as a financial product and contract between an individual and an insurance company where a lump-sum payment or series of payments known as premium is made to the insurer, and in return, the insurer pays a regular income to the client beginning either immediately or at some point in the future, and for a lifetime, said the benefits of annuity are numerous and include, security, risk transfer mechanism, longevity risk, flexibility and estate planning.
Making clear the difference between Programmed Withdrawal (PW) and Retiree Life Annuity (RLA), Ogedengbe stated that the revised Pension Reform Act of 2014 gives a retiree the liberty to choose the benefit that suits. Programmed Withdrawal, is offered by Pension Fund Administrators (PFAs) for periodic pension payments (monthly/quarterly) to a retiree from the balance in their Retirement Saving Account (RSA), for a long as the RSA balance can accommodate. On the other hand Retiree Life Annuity is offered by a licensed insurance company to pay an agreed periodic income (pension) to a retiree in a monthly/quarterly basis for a life time.
Coming home to AIICO annuity offering, Ogedengbe said it offers Immediate Annuity and Deferred Annuity Plans. “Immediate Annuity plan allows an individual to pay a single premium to purchase an Annuity plan, after which an immediate periodic payment is made to the client either monthly or on a quarterly basis for life.
“Immediate annuity shares some common features with the PenCom Retiree Life Annuity, but the source of fund is usually from the account of the individual and not the pension RSA as applicable in RLA. Deferred Annuity is a life insurance plan designed specifically for your retirement that offers you a fixed income from a future date chosen by you. “Deferred annuity plan enables you to save money during your earning years and earn income during your retirement,” Ogedengbe explained.
It would be recalled that during the 2022 Customer Service Week celebration, AIICO Insurance’s annuity policyholders passed confidence vote on the company for rendering excellent and satisfactory services.
