Cornerstone Insurance Insight: Why annuity remains a reliable retirement income solution

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As more employees approach retirement with concerns about financial stability, rising living costs and increasing life expectancy, annuity products are gaining recognition as one of the most dependable tools for securing income after active employment. To address this growing need, Cornerstone Insurance Plc is highlighting its annuity offerings as a practical solution for retirees seeking guaranteed income throughout their lifetime.

An annuity is a contractual arrangement between an individual and an insurance company in which the retiree pays a lump sum and receives regular income payments at agreed intervals—monthly, quarterly, half-yearly or annually. The arrangement is designed to provide steady income for life, helping retirees avoid the risk of exhausting their savings.

Cornerstone Insurance offers its annuity products through three flexible options tailored to meet varying retirement needs and family considerations.

Flat Annuity with No Guarantee
This option provides regular payments to the annuitant for as long as he or she remains alive. Payments stop upon the annuitant’s death, making it suitable for retirees whose primary objective is to maximise lifetime income.

Flat Annuity with Five-Year Guarantee
Under this plan, payments are guaranteed for a minimum of five years, regardless of whether the annuitant survives the entire period. If death occurs before the end of the fifth year, the present value of the outstanding payments is paid to the designated beneficiary or next of kin. Should the annuitant live beyond the guaranteed period, payments continue for life and cease only upon death.

Flat Annuity with Ten-Year Guarantee
This option extends the guaranteed payment period to ten years. If the annuitant dies before the completion of the tenth year, the present value of the remaining payments is paid to the beneficiary. If the annuitant outlives the guarantee period, regular income payments continue for life.

Through these flexible annuity solutions, Cornerstone Insurance aims to provide retirees with peace of mind, financial stability and protection against longevity risk.

For more information, interested individuals can visit any Cornerstone Insurance branch nationwide, call 07086216957, or visit the company’s website at www.cornerstone.com.ng.