NAIROBI, Kenya
CIC Life Assurance Company today launched an annuity plan for retirees with a steady lifetime income. This plan protects retirees against the risk of outliving their earnings.
An annuity is a contract that converts a sum of money into a series of periodic payments-monthly, quarterly, semiannually, and annually-for an agreed period of time.CIC will offer guaranteed annuities to both single life and joint life. This will be with an option of three guarantee periods: no guarantee period, 5 years guarantee period and 10 years.
The payments of the annuity can be fixed amounts or increasing annually by 3% or 5%. The guarantee period is the period that the insurance company will continue to pay the periodic annuity regardless of whether one survives the guarantee period or not. This payment will be made every month to the policy holder after purchase of an annuity plan.
The payments stops for single life in the unfortunate event of death of the annuitant after the guarantee period and for joint life, the payment will stop in the event of the death of either the annuitant or the spouse after the guarantee period. If death occurs before the guarantee period is over, the beneficiaries can opt to continue receiving the periodic payments up to expiry of the guarantee period or receive a lump sum payment of the outstanding annuity payable.
The minimum purchase of the annuity is Kshs 400,000.This has been set to enable an annuitant to get a considerable regular annuity payment and the minimum age of entry is 50 years. There is also a 14-day cooling off period for the annuity cover. In this case, CIC will return all the funds to the annuitant or original pension provider, whereas the client must also return their tax-free cash, if they have received it. In addition to this, CIC will offer Family Life Cover of Kshs100,000 payable in the event of death of the Principal Member.
Present during the launch were, Mr. Mugo Kibati, Vision 2030 Delivery Secretariat Director General, Mr. David Rono, Managing Director, CIC Life Assurance Company, Nelson Kuria, CIC Insurance Group CEO and other dignitaries.
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