Former Vice President Gilbert Bukenya addresses journalists at
Parliament yesterday. He says he is free to join any party. PHOTO BY
Geoffrey Sseruyange.
By Allan Lwanga
Absolutely. In our lives, we are sometimes lucky
to receive a generous pay out for example, maturity of
your pension, a compensation from a law suit, an award to a professional athlete or even payment to a musician from a successful concert. But what you do with that money all determines the future.
your pension, a compensation from a law suit, an award to a professional athlete or even payment to a musician from a successful concert. But what you do with that money all determines the future.
The biggest risk for someone who might get such
windfall gains is to run out of money and die poor.
Imagine collecting your lump sum pay out from NSSF after toiling so hard for it only to be misguided into a poor business investment or even worse conned. A friend I know invested his hard earned pension into a hardware business but sadly, no more than three years later, business losses had eaten away all his pension money.
Imagine collecting your lump sum pay out from NSSF after toiling so hard for it only to be misguided into a poor business investment or even worse conned. A friend I know invested his hard earned pension into a hardware business but sadly, no more than three years later, business losses had eaten away all his pension money.
Life insurance offers immediate annuities as a means to manage this risk. An immediate annuity is a plan offered by an insurance company to pay out a series of payments e.g. every month to an individual starting at a certain date in exchange for one lump sum cash payment. These payments will be paid up to death regardless of how long the individual will stay on earth. An example is a client aged 40 years who takes Shs250m to an insurance company and is given Shs1.4m monthly anticipating to live for another 30 years. This will be paid until the day he dies whether 30, 40 or 80
years later. Already by the time he turns 55 all his capital is recovered and the rest is just bonus.
Professional athletes and music icons definitely need this kind of product. In 2008 Evander Holyfield at an old age of 46 was forced to fight and lose to Nickolai Valuev due to heavy debts, child support suits and a bank foreclosure on his 10 million dollar estate.
For further information on this or any
other issues, please contact us via email on; lifeadvisor@uap.co.ug or
visit our facebook page on www.facebook.com/uaplifeadvisor or text
0755353545
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