Pensions funds are good for the future, but Annuity guarantees a better future. Life after retirement can be unpleasant if necessary measures are not put in place to cushion the effect of irregular or no income.
Annuity Plan should be considered when planning for a better deal in the optimization of pension funds domiciled in Retirement Savings Account (RSA). Pension funds utilization ends when your deposit in your RSA is exhausted, but Annuity continues as long as you live. Annuity, therefore, is a smart way of getting a guaranteed income for life after retirement.
Annuity is a contract between an annuitant (Policyholder) and the insurance company whereby the Annuitant deposits a lump sum to the insurance company. A fixed sum is paid to him by the insurance company at an agreed frequency (e.g. Monthly, Quarterly) typically for the rest of the annuitant’s life. However, payment ceases (except for the guaranteed annuity) upon the unfortunate death of the annuitant.
Features & Benefits of Annuity
- It provides an income at retirement
- Guaranteed income for life
- Provision of cash sum upon the death of the annuitant (if he dies within the guaranteed period)
- To make provisions for children/wards education i.e. to pay school fees
- For investment purposes
- To cater for periodic payments e.g. monthly rental /utilities etc.
- To augment other benefits received from employment
- Minimum entry age is 40 years while the Maximum age of cover is 70 years
- Ease and flexibility of income payment to the annuitant bank account at his/her favoured frequency (whether; Monthly, Quarterly, Half-yearly or Annually)
- Policy can be tendered as a collateral
- Convenient and easy steps to purchase policy online
Types of Cornerstone Annuity
Cornerstone Annuity comes in three variants:
1.Flat Annuity with No Guarantee: Under this annuity type, the structured payment is made to the client as long as the annuitant lives, and payment ceases upon the on fortunate death of the annuitant.
2. Flat Annuity with 5 Years Guaranteed: Under this annuity type, the structured payment is made to the client for a guaranteed period of 5 years regardless of whether he lives or not (If annuitant dies before the end of the fifth year, the present value of the payment yet to be made to him shall become payable to his named beneficiary or next of kin whereas if the annuitant lives beyond the fifth year, He will continue to receive his structured payment for life which will cease upon his unfortunate death.
3. Flat Annuity with 10 Years Guaranteed: Under this annuity type, the structured payment is made to the client for a guaranteed period of 10 years regardless of whether he lives or not (If annuitant dies before the end of the tenth year, the present value of the payments yet to be made to him shall become payable to his named beneficiary or next of kin whereas if the annuitant lives beyond the tenth year, He will continue to receive his structured payments for life which will cease upon his unfortunate death.
Learn more about Annuity Plan? Click HERE
Call: 01-2806500; 0700-CORNERSTONE