Description

An Annuity is an arrangement whereby a life office/Insurance company, in exchange for purchase price/money, enters into a contract to pay a set amount of money (the Annuity) every year while the annuitant (the person on whose life the contract depends) is still alive. The layman word for an annuity is Pension.

The beauty of an annuity especially when used in connection with retirement provision is that it would ensure that the retiree has an income for life or for a convenient numbers of years. It would therefore provide an assurance against the possibility of the annuitant out living the capital. Payments may be made monthly, quarterly, tri-annually, semi-annually or annually in-advance at the option of the Annuitant.

All annuity contracts can be on level or increasing/escalating installments. Installments that increase by a fixed percentage each year are appropriate to offset the effects of inflation.

When the decision to purchase an Annuity has been made, the purchaser is required to fill out an Annuity Purchase proposal form, which should be submitted to the Life office accompanied by the National ID of the Annuitant if an adult. Once the periodical payments have commenced, the life office normally requires evidence of continued existence in respect of the annuitant.

Types of Annuities

• Deferred Annuity

This is a contract that delays the payments of income, Installments for a specified period. The annuity type has two phases; the savings phase in which you invest money into the account, and the income phase in which the plan is converted into a life annuity and payment is received.

• Guaranteed Annuities

Payments under these arrangements are definitely pledged/assured for a minimum period regardless of when the annuitant dies, in other words, an annuity guaranteed for ten years will be payable for life or ten years, whichever is longer. If the annuitant dies during the guarantee period, then the balance of the guaranteed installments will be payable to the estate. The amount of annuity people can buy for a certain sum of money depends upon their age at the time of purchase, the Chosen Guarantee Period and upon their sex.

• Temporary Annuities.

These are annuity contracts that cease payments on the occurrence of a certain named event in the life of the Annuitant other than death e.g. re-marriage or attainment of a certain age or expiry of a specified term.

WHY PURCHASE ANNUITIES FROM ICEA LION Life?

• Highly capitalized
• Has grown steadily since inception, and stable
• Efficiency in settlement of claims
• Highly computerized and gives the best turn around period on payments
• Reputation in the market for efficiency and best practice
• Professionalism- The Company has the highest number of qualified insurance personnel in the industry
• Invests funds in accordance with the law (Insurance Act)
• Provides very high annuity rates
• Has a well-diversified portfolio
• Runs over 75% of Annuity contracts in Kenya; and
• The Company has been in this business for over 50 years.

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