Cornerstone Insurance Insight: How annuity secures lifetime income for retirees
Cornerstone Insurance Plc
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Annuity has continued to gain attention as a reliable financial lifeline for retirees seeking steady income and peace of mind after active service. Designed to provide long-term financial security, annuity ensures that retirees are not left vulnerable to uncertainty in their post-employment years.
Explaining the concept, the Managing Director/Chief Executive Officer of Cornerstone Insurance Plc, Mr. Stephen Alangbo, described annuity as a contractual agreement between an annuitant (policyholder) and an insurance company.
Under the arrangement, the annuitant pays a lump sum or transfers his Retirement Savings Account balance with his pension company to the insurer, which in turn guarantees regular income payments, monthly or quarterly, usually for the rest of the annuitant’s life.
“Annuity is a contract whereby the annuitant deposits a lump sum with the insurance company, which ensures a fixed sum is paid to him at an agreed frequency, typically for life,” Alangbo said.
Highlighting its benefits, Alangbo noted that annuity provides retirees with financial stability, as income continues for as long as they live, removing fears of outliving their savings. He explained that under the 10-year guaranteed annuity plan, if an annuitant dies before the expiration of the guaranteed period, the present value of the outstanding payments becomes payable to the named beneficiary or next of kin.
Cornerstone Insurance Plc, one of the leading insurance companies in Nigeria, offers annuity products structured to meet the needs of retirees, ensuring transparency, reliability and long-term income security. With increasing concerns over post-retirement welfare, annuity remains one of the most dependable tools for sustaining livelihoods and preserving dignity in retirement.
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.
