Cornerstone Insurance Insight: Why annuities matter in retirement planning
Cornerstone Insurance Plc
As retirement approaches, securing a dependable source of income becomes increasingly important for workers planning for life after active employment. Longer life expectancy and changing financial needs have made it essential for retirees to consider arrangements that can provide steady income while supporting long-term financial stability.
Cornerstone Insurance Plc is highlighting its annuity solutions as a structured option for individuals seeking regular income throughout retirement. The products allow retirees to convert a lump sum into periodic payments while providing different levels of financial protection for beneficiaries.
An annuity is a contract between an annuitant, who is the policyholder, and an insurance company. Under the arrangement, the annuitant pays a lump sum to the insurer and receives agreed payments in return. Depending on the policy terms, payments may be made monthly, quarterly, half-yearly or annually and can continue for the annuitant’s lifetime.
Cornerstone Insurance offers its annuity product online through three variants designed to accommodate different retirement and family needs.
The flat annuity with no guarantee provides regular payments for as long as the annuitant lives, with payments ending upon death.
The flat annuity with a five-year guarantee provides payments for at least five years. If the annuitant dies before the end of the guaranteed period, the present value of outstanding payments is payable to the named beneficiary or next of kin, subject to the policy terms. If the annuitant survives the guarantee period, payments continue for life.
The flat annuity with a 10-year guarantee operates similarly, but extends the guaranteed period to 10 years. If the annuitant dies within the period, the present value of the remaining payments is paid to the beneficiary. Where the annuitant survives beyond the guarantee period, payments continue throughout life.
These options provide retirees with structured income while allowing them to consider the financial needs of their beneficiaries.
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.
