L-R: Patricia Onyango and Adrew Otengo – ICEA LION Life Directors with AlHajj Ibrahim Kaddunabbi – CEO of the Uganda Insurers Association and Rita Nansasi – URBRA Director Legal Services
ICEA LION Life Assurance Company (U) Ltd has today announced the introduction of the ICEA Annuity Plan for retirees and those nearing retirement. The ICEA Annuity plan guarantees the holder a regular stream of income for life after retirement. The ICEA Annuity plan 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’s 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.
This 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.
Speaking at the event launch, Alhaj Kaddunabbi, CEO of the Insurance Regulatory Authority (IRA) confirmed that the product has been reviewed and met all regulatory requirements to be offered on the market.
“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,” he said.
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, CEO, Uganda Retirement Benefits Regulatory Authority.
Mwaka reiterated the commitment of ICEA LION to increase the uptake of insurance services in the market through innovation and providing tailored and relevant financial solutions to 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 UGX3.7 trillion and underlying investments of over UGX145 billion, ICEA LION is financially solid. We are one of the largest annuity providers in the region with the oldest annuitant aged over 111 years who have benefited from the annuity product for the last 50 years.”
