03/01/2019
To a lay man they see Insurance as a long term investment plan which they seem to look at as been uncertain. Truly, it is a long term investment plan that provides indemnity against a future occurrence of an uncertain event. It is very good for one to have an insurance policy that guarantees a protection cover on one's life and for investment purposes in the future. There are so many insurance policies that guarantees a person's future plans. The Cooporate savings plan, Annuity that guarantees payment for life till the person dies, we have the Flexible Endowment plans that guarantees payment over a period of time be it a 9 year plan, 12 year plan and 15 years plan, we have Education legacy assurance plan for our children till they get to an adult age of 18 years and so many more which i will later explain more in details. I will start with the Flexible Endowment plan. This is a plan that combines protection and investments, provides guaranteed payouts at regular intervals in three installments, tax rebate, children Education, Business expansion, family financial security and a policy loan of 70% of cash value as from the 3rd year. An illustration will be given, for a 9 year plan Flexible Endowment of 5million Naira, an annual premium of 806,650 would be paid into the account of the insurance company AIICO and if it is a half yearly premium payment the sum of 419,783 would be paid into the account of the insurance company AIICO same goes for a quarterly payment of 217,995 would be paid into the account of the insurance company AIICO, so the type of payment that suits the insurer can be done. Now for every year a 4% bonus of the sum assured which is the 5 million that is 200,000 would be paid to the insurer and at the 3rd year a 25% is paid as partial maturity benefit which is 1,250,000 same goes at the 6th year a 25% partial maturity benefit and for the 9th year of this plan a 100% accrued bonus is paid as final maturity benefit. Now for the 9 years window plan of this policy you would have found out that you have paid a total amount of 7,259,850 for the 9 years and you will receive a total amount of 9,300,000. Who says insurance doesn't pay? It sure does. My name still remains Adedayo Biodun Olasheni, a financial advisory service officer with AIICO AN AMERICAN international Insurance Company.
