Business & Investment

How to invest in Annuity in Nigeria

One of the reasons why people buy insurance is to protect themselves in addition to their properties against unforeseen circumstances, such as deaths, accidents, fire outbreaks, etc. Insurance helps people and companies as well to safeguard their properties in the case of any sudden unforeseen circumstance.

Insurances vary from life to health, auto, and disability insurance. With the topic we are discussing today, which is “how to invest in annuities in Nigeria” our focus would be on life insurance. This is to suggest that if you’re looking to invest in annuities, then look no further and go get a life insurance policy such as an annuity.

I know you want to jump right into it but I am doing all these break downs to foster an easier understanding of what annuities are because despite being quite popular in other parts of the world, it’s not the case over here( where you and I are lucky enough to be born into..lol).

However, thank God for the internet and of course informative websites like the one you are on, info guide Nigeria where you can find such wonderful content at $0.00. Now you’re asking,

What is an annuity?

How to invest in Annuity in Nigeria

An annuity is a form of policy offered by an insurance provider intended to accept and expend funds and establish a source of revenue or payments upon annuitization (converting an annuity investment into a series of periodic income payments). Either a lump sum or a series of payments maybe the cash you pay in.

 

Who Should Invest In Annuities?

Anyone really could invest in annuities. It’s just like a life insurance policy that secures a steady income for an individual. However, most times annuities are intended to be a stable means during retirement years to ensure a person’s steady cash flow and to mitigate concerns of longevity risk of outliving one’s assets. Yes! There you have it. Anyone could invest in annuities as life is the most valuable asset but it is most advisable for individuals who are retirees or better still quite close to retirement ( a stitch in time saves nine). If you’re close to your retirement and you have got a lump sum and subsequent monies to invest in annuities till annuitization, then why not. We never know what the future holds.

One critique of annuities is the illiquidity of them. Usually, deposits into annuity contracts are locked up for a while, referred to as the period of surrender, where if any or part of that money were disturbed, the annuitant would pay a penalty.

 

Types of Annuities.

Annuities are of four types and they include:

  • An immediate annuity is a system of payment in which payments start directly after payment of the lump sum.
  • Deferred income annuities are the opposite of an immediate annuity since, after the initial payment, they do not begin paying out. Instead, the annuitant determines the age at which he or she wishes to begin accepting insurance company benefits.
  • Fixed annuities provide the annuitant with daily monthly payments.
  • Variable annuities allow the investor to earn higher future cash flows if the annuity fund’s investments do well and if its investments do poorly, sadly that would mean lower payments. This offers less predictable cash flow than a fixed annuity but enables the annuitant to reap the benefits of good returns from the investments of their portfolio.

Now that you know the various kinds of Annuities and have already decided which one best suits you, I know you would want to know the companies that offer these annuity products in Nigeria and how you could invest your lump sum and just wait till the investment or premium matures before you begin to earn a salary again, without having to work. Sounds great right! Let’s move forward, shall we?

Insurance companies that offer Annuities in Nigeria.

Some of the insurance companies selected in this article were influenced due to certain factors such as an image of the company, track record, legal accreditation, financial strength, and coverage.

All of the aforementioned are the factors that guided us in making this research and should guide you too when you do your research. Yes! You’ve got to do some research yourself to make a pick on which company suits you and why. This and many other articles you’ll find online are for general purposes but none narrows it down to your taste and predicament.

These insurance companies include;

1. AIICO Insurance Plc.

AIICO Insurance Plc. is an insurance, pensions management, and asset management Group established in 1963. It is of the top insurance companies in the country its key focus on, General insurance and special risks, Life assurance and annuity, Health

insurance, Asset management, and Pension management.

2. Lead Way Assurance company

LEADWAY offers services in both Life and Pensions and LEADWAY Assurance (founded in 1970) offers insurance services in General business insurance and Life & Pensions. The Company also offers allied financial services such as Secured Credit, Bond, Miscellaneous financial losses, and Portfolio management.

They are very active online, across various social media channels, and have computerized most of their operations to boost effectiveness.

3. Cornerstone Insurance Plc

Cornerstone Insurance company was incorporated as a private limited liability company on July 26, 1991. Eventually, it became a Public Limited Liability and was quoted on the Nigerian Stock Exchange(NSE) in 1997.

Since its inception, Cornerstone Insurance has remained dedicated, putting their client first and creating solutions that meet their needs.

It is licensed by NAICOM -the National Insurance Commission – to do both Life and General business insurance.

4. African Alliance Insurance Plc

African Alliance Insurance plc., was incorporated on May 6, 1960. The insurance Plc company has a reputation for being efficient and trustworthy in Life Assurance. Also, they personalize their insurance products tailored for each stage of their clients’ lives. They offer policies such as Annuity assurance plan, Group life assurance plan, Esusu plan, Direct debit form plan, etc.

5. Lasaco Assurance Plc

Lasaco Assurance Plc was incorporated on December 20, 1979, under the Companies Decree of 1968.

At that time, the Company was called Lagos State Assurance Company Limited. Eventually, they got a License as an Insurer on July 7, 1980, and commenced operations on August 1, 1980.

How do I invest in Annuities in Nigeria?

These days, everything, or maybe not everything but most things have been digitalized and so the internet has made things so easy for every one of us. On how you should invest, depends on the modus operandi of the insurance company you’ve decided to use. I cannot decide on my own that it’s the same thing registering for all companies.

However, for the sake of this article, I have picked out a particular assurance company that offers Annuities and it is listed above. Mind you, this is not a sponsored post of any kind but rather an informative one, especially for those who may not have the time to do their research.

This would help them reduce their workload. The company selected for this exercise is Leadway assurance. They offer Annuities, you can click on the link to take you to their annuities page: https://www.leadway.com/annuities-pensions/. When. You get to the website; you are to take the following steps.

  • Click on the link above to take you to the Annuities and pension page of Leadway assurance.
  • You’ll find the Leadway personal annuity plan and the deferred annuity plan. Click on “get a quote” on your preferred plan.
  • Filling out the form, you’ll come across “name”, “date of birth”, “address”, etc.
  • Click on “continue”.
  • Enter the amount you intend to invest and enter the intervals you want the payment to be made and for how long.
  • Click on “finish.”

You could put calls across to them if you ever get confused with the registration, as they have their customer service numbers boldly written at the top of their website.

Thank you for your time, hope you make the right choice when choosing an insurance company and the plan that suits you the most.

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Leonard Quartz

Leonard is a content developer at InfoGuideNigeria.com. InfoGuide Nigeria team comprises Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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