Great Nigeria Insurance Plc has said the annuity business of the underwriter increased by 8.9 per cent in the first quarter of 2021 representing over N52.5 million recorded at the same period in 2020.
Speaking on the development in Lagos, the Managing Director, Cecilia Osipitan, said that life annuity was a stream of periodic payments that commences at a specified date, which is either the normal retirement age or at 50 in the case of early retirement. The payment, she said, could be monthly or quarterly depending on the retiree’s preference.
Osipitan explained that the benefits include the continuous flow of regular incomes for the retirees, insulation from the risks associated with the investment of lump-sum benefits, structured management of resources and the transfer of the risk of diminution in assets as well as possible failure of investments of retirees to insurance companies, which are better equipped to manage such risks.
She added: “Insurance remains the most reliable bedrock of existence and cultivating the culture of insurance can never be over-emphasised. There is a need to call for a paradigm shift through effective sensitisation of the insuring public as it is very important to imbibe the culture of getting appropriate insurance cover to protect assets and lives in case of any eventuality”.
Also speaking, the Corporate Communications and Brand Manager, Oyinkansola Sobande, explained that retirement should be the time to live stress-free life after years of active engagement and not a time of financial difficulties.