The management of AICO Insurance Plc has disclosed that it paid a total of N52.6 billion to its annuity customers in the last five years.
The Annuity Product Manager of AIICO Insurance Plc, Mr. Joseph Ogedengbe who said this at a one-day training programme in Lagos, added that the amount was paid between 2019 and 2023.
Mr. Ogendengbe pointed out that the company was committed to ensuring retirees receive their payments as and when due, explained that in 2019, AIICO Insurance paid N5.2 billion, N6 billion in 2020, N6.2 billion in 2021, N7.8 billion in 2022 and N12.6 billion in 2023.
He stated that under AIICO Insurance’s annuity portfolio, the company offers Immediate and deferred annuity plans.
According to him, the 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 quarterly for life, while the deferred annuity is a life insurance product designed specifically for retirement and offers clients a fixed income from a chosen future date.
He explained further,“Immediate annuity shares some common features with the PenCom Retiree’s Life Annuity, but the source of funds is usually from the account of the individual and not the pension Retirement Savings Accounts (RSAs) as applicable in RLA. It enables you to save money during your earning years, enjoy tax rebates, and earn income during your retirement.”
Mr. Ogendengbe enumerated the benefits of annuity cover to include security, risk transfer mechanism, longevity risk, flexibility, and estate planning.
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