The new product allows the holder to make a lump sum deposit with the promise of guaranteed regular payments for the rest of one’s life.
“Typically, retirement benefits are provided through lump-sum payouts by retirement benefit schemes like NSSF and others. It is commonplace to find retirees unable to sustain themselves because they invested in ventures that cannot guarantee a regular income during retirement.
This leaves our retirees economically dependent on others especially close family and friends. An annuity plan guarantees a steady income which is crucial to meet essential monthly expenses,” said Emmanuel Mwaka, the Chief Executive Officer, ICEA LION Life.
He noted the new plan is open to everyone who has accumulated savings towards their retirement through NSSF, private retirement benefit schemes, businesses and any other form of savings or investment avenues and would like the option of a steady stream of income in retirement.
The Chief Executive Officer of the Insurance Regulatory Authority of Uganda, Alhaj Ibrahim Lubega Kaddunabbi hailed ICEA for such an innovation that will see more people take up insurance.
“We continue to encourage insurance providers to embrace innovation to increase uptake and access of insurance services among the population. Innovation is critical to the insurance industry as it has the capacity to reconstruct the mechanisms of society by reducing and even removing barriers to accessibility.
World over, the importance of retirement planning cannot be understated. It is important to plan for retirement because assuredly when people retire, they are bound to experience a reduction in income,” Kaddunabbi said.
According to officials, the plan is tax-free and provides a host of benefits including guaranteed income, medical cover at a subsidized premium and a funeral cover.
“We are concerned about the country’s emerging old age poverty crisis and are fully committed to the implementation of pension inclusion strategies. Year on year, a big proportion of benefits paid are lump- sum payouts, necessitating the need to introduce appropriate vehicles to preserve benefits. It gives us great pleasure to witness developments such as these that expand the options providing a wide array of offers for the population to choose from to enhance their quality of life after retirement,” said Martin
Nsubuga, the CEO for Uganda Retirement Benefits Regulatory Authority.
According to the ICEA Chief Executive Officer, Emmanuel Mwaka, the company is committed to increase the uptake of insurance services through innovation and solutions tailored to solve the problems of customers.
“There is no one-size-fits-all and as the economy grows, we are well positioned to continue to provide tailored financial solutions to our customers. With an accumulated asset base of over shs3.7 trillion and underlying investments of over shs145 billion, ICEA LION is financially solid.”