Cornerstone Insurance Insight: Safeguarding retirement with annuity plans

As more workers approach retirement with concerns about income stability, inflation and longevity, annuity has emerged as one of the most reliable financial planning tools for post-employment security. Recognising this growing need, Cornerstone Insurance Plc is spotlighting its annuity offerings as a structured pathway to guaranteed income for life.

An annuity is a contract between an annuitant (policyholder) and an insurance company, where the annuitant deposits a lump sum and, in return, receives a fixed income at agreed intervals, monthly, quarterly, half-yearly or annually, typically for the rest of their life. This arrangement ensures retirees do not outlive their savings.

Three flexible variants of annuity

Cornerstone Insurance offers its annuity product online in three structured variants designed to meet different retirement goals and family considerations:

1. Flat annuity with no guarantee
Under this option, structured payments are made to the annuitant for as long as he or she lives. Payments cease upon the annuitant’s death. This variant is ideal for retirees primarily focused on maximizing lifetime income.

2. Flat annuity with 5 years guaranteed
This plan guarantees structured payments for a minimum of five years, regardless of whether the annuitant is alive during that period. If the annuitant passes away before the end of the fifth year, the present value of the outstanding payments becomes payable to the named beneficiary or next of kin. If the annuitant lives beyond the five-year period, payments continue for life and cease upon death.

3. Flat annuity with 10 years guaranteed
Similar to the five-year guarantee plan, this variant guarantees payments for 10 years. If the annuitant dies before the tenth year ends, the present value of the remaining payments is paid to the beneficiary. If the annuitant survives beyond the guaranteed period, lifetime payments continue until death.

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.