What is an Annuity?
An annuity is an insurance product that pays out income on a regular basis e.g. monthly and can be used as part of a retirement plan. Annuities are a popular choice for investors who want to have a steady income stream in retirement. As per the provision of the Pension Act; upon retirement, pension scheme members subject to the amount they have accumulated under their pension benefits, have an option to commute (cash-out) 40% of their pension benefits and the remaining balance is used to purchase an annuity.
The monthly payments made to the policyholder is determined by a variety of factors including the purchase premium, guarantee period, age and gender.
Tikolore with Profits Annuity
The product is a single premium with-profits annuity. In return for the single premium, the policyholder receives monthly annuity payments which continue until the death of the policyholder. The minimum and maximum age at which the policy can be purchased is 20 and 80 years respectively.
How do you join?
- Open to members of a registered pension scheme and non-members who want a steady flow of income through annuity
- Upon attainment of retirement age or upon 20 years continuous service with one employer; a member may apply to join Tikolore Annuity Plan
- Obtain a quotation for annuity from NICO Life.
- Select the option of annuity plan you would like to obtain
- Complete the entry and beneficiary forms
Benefits of Tikolore Annuity
1. Annual Increases
The Product enjoys annual increases which are declared by NICO Life Insurance
Company Limited. Increases are decided on the basis of investment performance in
a particular year. The annual increase rate declared is the rate by which the regular…
annuity payments will increase. The increments are compound i.e. once an increment is allocated in a particular year, the annuity plus the increase will be the base for applying another increment in the following year. These increments, once declared, they cannot be taken away. Increases are effective 1st January of each year.
2. Guarantee periods
paid out and the policy will cease.
3. Funeral Benefits (Optional)
multiple of monthly payments of up to 6 (Six) months. This is paid out to a next of kin upon the demise of the annuitant to aid with funeral expenses.
Payments of Monthly Subscription
- The first payment will be made on the 1st of the month subsequent to the receipt of the premium by NICO Life.
- Payments will be due on the first day of each month unconditionally within the chosen guarantee period (5 or 10 Years).
- For the no guarantee period option, payments will be made upon submission of a duly completed Certificate of Existence form, once annually. This condition also applies when the chosen guarantee period has elapsed.
Terms and Conditions
- This annuity plan cannot be surrendered
- The annuity plan grows annually with investment returns.