AIICO Insurance Plc on Friday said it has committed to providing a robust annuity service that meets customers’ expectations and drives the growth of insurance in the country.
The managing director/Chief Executive Officer (CEO) AIICO Insurance Plc, Mr Babatunde Fajemirokun made the disclosure at an annual training for journalists covering the insurance sector in Lagos.
The theme of the training is : Understanding Annuity Business.
Fajemirokun represented by the Head, Strategic Marketing and Communications, AIICO, Mr Segun Olalandu said the underwriter is doing everything possible to deepen annuity business and take advantage of opportunities inherent in it.
He said AIICO has strategically repositioned its Annuity department for effectiveness and growth.
The managing director described annuity business as a game changer for everybody but noted that a lot still need to be done to deepen the business in Nigeria.
“We are not there yet in terms of annuity, but step by step, we will get there.’
“Our partnership with you as journalists, especially in respect of today’s training on annuity is an indication of our commitment to the growth of this business.
” I thank our media partners for your support and charge you to make good use of the training to enrich your knowledge on annuity and share your experiences so that when they are reporting on the subject matter, they will be able to tell the stories accurately,” he said
In his lecture , Senior Manager, Business Development, AIICO Insurance, Mr Victor Owotorose noted that annuity was very important and beneficial to clients and growth of the insurance industry.
Owotorose explained that annuity are insurance contracts that promise to pay you regular income immediately or in the future.
He said a deferred annuity has an accumulation phase, followed by a disbursement (annuitisation) phase; while an immediate annuity converts a lump sum into cash flows from day one.
According to him, annuity can be bought with either a lump sum or series of payments contributed over time.
” Annuities come in three main varieties—fixed, variable and indexed—each with its own level of risk and payout potentials.
” The income receive from an annuity is typically taxed at regular income tax rates which are usually lower unlike when calculated with long-term capital gains rates,” he said
According to Owotorose, annuity is a contract between a client and an insurance company in which the client make a lump-sum payment or series of payments and in return, receive regular disbursements, beginning either immediately or at some point in the future.
He noted that the goal of an annuity is to provide a steady stream of income, typically during retirement.
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