Cornerstone Insurance Insight: How annuity secures lifelong income for retirees
Cornerstone Insurance Plc
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Life annuity remains one of the most reliable financial products for retirees seeking steady income and long-term financial security after retirement, Cornerstone Insurance Plc says.
The insurer explained that annuity provides retirees with guaranteed periodic payments, helping them maintain a stable lifestyle throughout retirement without the fear of outliving their savings.
An annuity is a contract between an annuitant, who is the policyholder, and an insurance company, where the retiree deposits a lump sum with the insurer in exchange for fixed payments at agreed intervals such as monthly or quarterly, usually for the rest of the annuitant’s life.
According to the Pension Reform Act 2014, holders of Retirement Savings Accounts are permitted to withdraw a lump sum from their pension savings, provided the remaining balance is sufficient to procure either programmed withdrawal or annuity for life.
Cornerstone Insurance notes that life annuity is available to every retiree under the Contributory Pension Scheme as well as individuals seeking guaranteed income during old age. The company adds that workers in both the public and private sectors could also adopt annuity plans early as part of long-term financial planning.
The insurer further explains that under the annuity arrangement within the Contributory Pension Scheme, retirees are entitled to structured payments for life as long as they remain alive. In addition, annuitants enjoy a guaranteed period of 10 years. According to the company, if an annuitant dies before the expiration of the 10-year guaranteed period, the present value of the outstanding payments will be paid to the named beneficiary or next of kin. However, if the retiree lives beyond the guaranteed period, the annuity payments will continue throughout the individual’s lifetime.
Customers can obtain more information by visiting any Cornerstone Insurance branch nationwide, calling 07086216957, or exploring the company’s offerings online at www.cornerstone.com.ng.
