Cornerstone Insurance Insight: Using ‘Oga Boy’ Scheme to help merchants plan apprentices’ freedom
Cornerstone Insurance Plc
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Cornerstone Insurance Plc is using the Cornerstone Apprenticeship Savings Scheme (CASS), popularly known as the “Oga Boy” plan, to help merchants systematically save towards the completion of their apprentices’ training and eventual settlement.
The scheme allows business owners to contribute periodically during the apprenticeship period, building a financial pool that can be used to establish the apprentice in business upon gaining “freedom,” a traditional milestone in many Nigerian trade systems.
According to the insurer, the product is structured to provide better returns than regular savings accounts while reducing the financial pressure often associated with settling apprentices at the end of their training.
Under the plan, individuals below the age of 65 are eligible to participate, with a policy term of two years that is renewable. The interest rate is pegged at the Savings Deposit Rate (SDR) plus two per cent. SDR represents the Central Bank of Nigeria’s stipulated minimum savings deposit rate that banks can pay on savings accounts and currently stands at 30 per cent of the Monetary Policy Rate (MPR).
Participants can contribute a minimum of N5,000 periodically. The policy can be surrendered after a minimum of 13 months without withdrawal charges, although earlier surrender will attract applicable fees. While premature termination or withdrawal is allowed, accrued interest will be forfeited in such cases.
Beyond savings accumulation, the scheme also provides life cover benefits. The sum assured ranges from N100,000 to N1,000,000 and requires a one-time payment known as a risk premium, calculated at one per cent of the selected sum assured.
In the event of death, both the accumulated savings and the insured sum are paid to the designated beneficiary, providing financial protection for the policyholder’s family.
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.
