Leadway Annuity Just Got Stronger with PENCOM’s Approval

Jun 16, 2017

Living a healthy life and enjoying a good lifestyle well into your golden years is the wish of everyone. However, achieving this would entail that you plan for an enjoyable post-retirement era. As such, it is crucial at this time to consider how you will fund that period of your life, when you would have joined the league of retired folks.

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An annuity is a sure way to live that golden post-retirement life you truly deserve. Annuities are primarily designed to guarantee a steady cash flow for you during your retirement years. This steady flow of income in turn guarantees a healthy lifestyle that lasts through your entire lifetime, reducing the anxiety of the risks that come with outliving one’s assets.

Annuity is bought with the proceeds of the pension fund in your Retirement Savings Account (RSA) and/or Gratuity – savings made during your active work life.  According to the Pension Reform Act 2014, an employee, upon retirement, is entitled to a minimum of 25% of the aggregated sum contributed to the RSA during the years under employment, while the outstanding balance, 75%, is set aside for a programmed withdrawal plan or for the purchase of a Life Annuity Plan.

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The intricate thing about the Life Annuity Plan is that two industry regulators oversee it. The Annuity Service Providers (Insurance companies) that administer the annuity plan is regulated by the National Insurance Commission (NAICOM), while the Pension Fund Administrators (PFA), who look after your RSA are regulated by the National Pension Commission (PENCOM).

In 2016, a disagreement between both regulators – NAICOM and PENCOM – led to the latter demanding that all life insurance companies transfer their Annuity assets holdings to licensed Pension Funds Custodian. It also led them to suspend the issuance of new Annuity offers. This occasioned a lot of speculations and uncertainty regarding the funds of Annuitants who have been registered under life insurance companies. Following the controversy surrounding the harmonisation of pension and insurance operations in Nigeria, PENCOM, the regulatory body for Pension Fund Custodians has given insurance companies that met their requirements the go-ahead to continue offering Annuity policies.

It is, therefore, with great delight that we announce that Leadway Assurance Company Limited is among the few insurance companies in the country that have secured PENCOM approval to resume selling Annuity policies, having met all the requirements. This approval is a testament to the integrity and security of our Annuity plan. This validation gives our existing Annuitants an unhindered access to the benefits that they are already used to. As for prospective Annuitants, there is no better assurance than the approvals of two key regulators on a single product. So, go for the Leadway Annuity plan now.

Indeed, Leadway’s Personal (Immediate) Annuity Plan is designed to help with the cost that accompanies retirement by providing a steady stream of income for the rest of one’s life. Leadway’s Personal Annuity Plan meets the legal minimum requirements of PENCOM and NAICOM. The good news is that this Annuity Policy may be extended to any or all of the following options:

– A stepped annual increment of the annuity payment at 5% or 7.5% at every policy anniversary.

– A spouse option where, upon the death of the primary Annuitant, the Annuity payment continues for the lifetime of the spouse. When the primary Annuitant chooses this option, he/she decides how his/her spouse would get the pension payment.

To join the league of our pampered annuitants, please call our customer care service on (01) 2800 700, 2800 701 and +2348129997026 or send an email to Lcs@leadway.com for more information.

 

 

 

 

 

 

 

 

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