Deferred Annuity Plan
What is Leadway Deferred Annuity Plan?
The Leadway Deferred Annuity Plan is a savings plan towards retirement. It’s a plan whereby you contribute & accumulate savings over a preferred period of time up to retirement. This can however be used as a tool to augment any existing retirement scheme.
How does it work?
The contributions or savings are accumulated & built up over a period chosen or up to your retirement date. The contributions are accumulated in a dedicated account and accrue interest matched at Leadway Interest Rate.
Upon maturity or retirement period chosen, the accumulated fund can be collected as a lump sum or preferably used to purchase a Life Annuity plan (this provides regular income for life). It is specially designed for self-employed persons wishing to save towards retirement or for those willing to augment income from their employer(s) sponsored Retirement Savings Account (RSA).
What does the plan cover?
It provides cover for Death as a basic cover and Critical illness and/or Accidental Total & Permanent Disability as optional riders. This helps augment the savings aspect of this product by providing further cover to the policy holder and/or their dependents.
How does it work?
You choose your expected Sum Assured and your preferred period. You would then be expected to pay your contributions based on the frequency you have selected.
How can I pay?
You can choose to pay premium on a monthly, quarterly, semi-annually, annually or at once/single premium. You decide your preferred frequency of payment.
Duration of Cover
This policy has a minimum term of 5 years.
Benefits of Deferred Annuity Plan
- Death during Deferred Period: Accumulated value of contributions is payable to the beneficiaries stated in the policy in addition to the Life cover purchased (Minimum Life cover of N1m must be purchased and shall be funded from the account balance), without any hassle of probate processes.
- The plan can be used as Tax Relief thereby reducing the tax incidence of the policy holder.
- Very Attractive Interest Rate from Leadway.
- The Plan allows partial withdrawal provided the policy has been in operation for at least 3 years and still in the contribution period.
- It provides soft loan facility provided policy has been in operation for at least 2 years and still in the contribution period.
- Upon retirement, the policyholder has the option to convert into a Life Annuity at the prevailing annuity rates or an option of collecting a lump sum payment.
A Life Annuity will pay a regular fixed income to you, throughout your lifetime.