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Niger Flexible Investment Assurance Plan (NIFIAP) Introduction One of the greatest defects of a typical life assurance policy is that the policy becomes lapsed after sometime of non-payment of premium and in which case all benefits attaching to the policy will be lost. The usual requirement of paying the premium regularly as and when due can be too onerous for the assured. If he fails to pay regularly the consequent outstanding premium debt becomes a burden to the assured. In most cases the assured abandons the policy regrets not only the loss of the premium paid before the lapse of the policy but also the loss of financial protection provided by the policy. Such is the travail of a typical life assurance policy holder which has made the traditional life policy unattractive. The impact of inflation does not make the situation better. Niger flexible Investment Assurance Policy (NIFIAP) therefore aims at eliminating these negative factors which affect the expectation of a life policy holder.
FEATURES The Assured: The policy holder or life to be assured Scope of Cover: This will consist of: 1. Endowment Element: A portion of each premium paid will be utilized to buy a single premium with profits Endowment assurance. In one policy several sums assured can be purchased at different ages according to the ability of the life assured. Additional sums assured are not necessarily purchased at regular intervas but at such times convenient to the life assured within the period of cover. This arrangement gives the policy flexibility. 2. Investment Element: The balance of each premium paid will be invested in a deposit administration account with annual guaranteed compound interest.
BENEFITS THE POLICY PROVIDES THE FOLLOWING BENEFITS: 1. On the death of the assured before maturity age when the addition of the accumulated sum assured under the endowment assurance policies and the balance of the amount on the Deposited Administration account shall become payable. (i) FAMILY INCOME BENEFIT OPTION On death of the life assured before the maturity date the beneficiaries may opt to convert the death benefits to a Family Income Benefits which become payable annually in arrears from the date until the maturity date, with a proportionate payment at the end of the policy year in which the life assured dies. (ii) Periodic withdrawal which shall be from Deposit Administration account will attract no penalty but shall be subject to a limit on the frequency of withdrawal , interval of withdrawal and minimum period of deposit before withdrawal. This will be advised by actuary. (iii) Maturity benefit made up of the accumulated endowment sums assured plus accrued bonus and the value of the deposit administration including accrued interest as at the date of maturity (iv) Annuity Options The policy holder may elect to exchange the maturity benefit in whole or part for an annuity in accordance with the company’s arrangements then in force and according to the assured’s age at maturity.
POLICY OPTIONS There exist several options to maintain the policy and/or to claim benefits. These options include: a) Additional Cover b) Annuity c) Family Income Benefit d) Pre-maturity withdrawal Premium: This is paid at anytime during the period of the policy and the frequency of payment shall be at the absolute discretion of the policy holder. The amount of premium payable at each occasion is not fixed but shall be according to the financial circumstances of the policy holder. Apportionment: The assured shall be free to determine the percentage of each premium paid to be apportioned between endowment and the Deposit Administration account. Policy Period: The duration of the policy shall be determined by the assured or by the interval of his/her age at entry and the maturity age. However the policy shall have a minimum period of 5 years. Maturity Age: While the assured may be free to choose maturity period/age, the policy shall have maximum maturity age of 65 years. Interest Rate: A flexible interest rate shall be applicable to the policy in line with the prevailing market rate. Surrender Value: The surrender value will be made up of the account balance of the Deposit Administration Scheme plus the present value of the sums assured on the endowment assurance policy at the time of surrender.
ADVANTAGES Advantages of the policy 1. The benefits payable under the policy are not easily eroded by inflation as in the case with traditional endowment life policies. 2. The amount of premium payable under the policy holder can invest in the policy at regular and the frequent intervals as his circumstance improves. 3. The policy does not lapse once the first premium has been paid. 4. The policy allows the assured to accumulate a target savings plan at his/her convenience for retirement or towards a special future event. |
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