Annuity will pay your wage in old age

Ufomba worked for 27 years in an engineering firm in Kaduna and retired in 2004, with a huge sum of money received from his company as gratuity.

But Ufomba, not understanding the risks of investment, having a been a civil servant all his life ran into trouble embarking on an unfamiliar business. He got a warehouse in Port Harcourt his state capital and went into rice business as a wholesale distributor. Five years into the business Ufomba could no longer pay rent on the warehouse, or staff salaries or keep his vehicle running. All the money is gone and huge debts have surfaced and out of frustration Ufomba developed high blood pressure.

The little money left over was spent on hospital bills to take care of his health, and he is no longer in business.

Fourteen years after, Ufomba is still alive but can hardly take care of himself and now depends largely on his children and relatives for survival.

If Ufomba had used his gratuity to buy an annuity product, which will guarantee him an income for life, he would not have any reason depend on other people for survival.

When we talk about annuity, many people think it is for only those who have worked in the public service or corporate organisations, or those who have pension arranged by their employers.

That is not true. It is for everybody who anticipates long life and a regular income in old age. If you are looking forward to a long life, then you need to have an annuity plan, so that you would be in a position to earn an income throughout your life.

George Onekhena, deputy commissioner for Insurance, Finance and Administration at the National Insurance Commission (NAICOM), had said, “Plan for your tomorrow’, old age, with life annuity.”

Onekhena says longevity is a blessing from God and so it should not turn to a course because of the lack of planning. “If you are blessed with old age and you die of hunger, you are the cause. Buy annuity today,” the insurance expert advised.

What is Annuity for Life Policy?

Annuity for Life Policy is a retirement instrument for retiring employees or people offered by a life insurance company.

Annuity for life policy is a type of annuity contract that provides, in return for a lump sum, a monthly or quarterly payment, starting immediately after retirement and continuing for the rest of the retiree’s life.

The contract is often purchased by retiring persons who want an income that is guaranteed to last for the rest of their lives, no matter how long that might be.

Annuity for Life Policy has the following benefits:

(a) Annuity pays the retirees as long as he/she lives. Imagine the Mandela example. If he had retired at age 50, because he lived for 94 years, he would have received annuity income for 44years after retirement till death.

(b) Annuity for Life Policy has a guaranteed period of ten (10) years. The implication of this, is that if the retiree dies a year after retirement and he/she has just received one (1) year, the remainder of the retiree’s income for nine years shall be paid to a named beneficiary.

From the foregoing, an annuity for life policy remains a veritable option for retirees who deserve a restful and enjoyable retirement. “My message to the retiree is simple, how I wish I am at this stage of yours to make a choice for my retirement instrument, I will choose Annuity for Life Policy over and over again because I know that “as long as I live, I will continue to enjoy my steady income” says an insurance analyst.