Investment and Financial Security Plan

By Oyekola Taiwo Zacharia  email address: consciousofrisks@yahoo.com; phone no: 07063718460

Investment and financial security planning involves building a robust and personalized strategy to manage income, cover expenses, and protect against risks.

The key steps include creating a budget, establishing an emergency fund, reducing high-interest debt from loans, and investing for the future.

There are products approved and regulated by the National Insurance Commission (NAICOM) in the life retail business that can help working-class and self-employed individuals accumulate funds for children’s school fees, business expansion, and retirement within a single product.

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A Flexible Endowment Plan is a product that matures in three instalmental phases. If the policyholder is alive at maturity, they will receive all the proceeds together with the accrued bonuses.

However, in the event of the earlier death of the assured or the owner of the policy, the sum assured, partial maturity benefits, and accrued bonuses will be paid to the nominated beneficiaries to support school fees or ensure business continuity.

B) The product combines financial protection against eventuality with investment benefits.

INVESTMENT FEATURES

A) Partial Maturity:

It pays three instalments of 25%, 25%, and 100% of the sum assured, depending on the policy duration selected.

B) Bonus:

It pays a reversionary bonus of 4% of the sum assured per annum, payable at maturity or upon the earlier death of the policyholder.

C) Premium Loan:

It provides a loan at an interest rate of 1% per month after three years, provided that all premiums have been paid up to date.

D) Collateral:

The policy certificate can serve as a supplementary collateral document to secure a loan from any reputable financial institution in Nigeria.

E) Policy Duration:

The available policy durations are:

6 years: (2+2+2).25%,25% 100% of the sum assured and 4% bonus per annum.

9 years: (3+3+3): 25%,25% 100% of the sum assured plus 4% bonus per annum

12 years (4+4+4):25%,25% 100% of the sum assured and 4% bonus per annum.

15 years:
(5+5+5):25%,25%,100% of the sum assured,and 4% bonus per annum.

F) Interest Rate:

Reinvestment of any partial maturity benefit attracts a higher interest rate,which could be compound interest depending on the investment value.