A man counts his money. The new investment plan will offer investors an
option of a return of their invested principle on exit. PHOTO | FILE |
NATION MEDIA GROUP
Kenindia
Assurance Company has unveiled a new annuity investment plan that will
offer investors an option of a return of their invested principle on
exit.
Speaking during the launch of its secure future
annuity on Monday, Kenindia managing director Vinod Bharatan said that
beneficiaries will be able to get a full refund of the invested
principal upon the death of an annuity holder, unlike the case in a
number of other annuity products which either pay a reduced balance on
the principle or nothing.
Annuities are a form of
investment where one gives an insurer a lump sum of cash upfront in
return for regular income payments, either for a fixed period or for
life.
They mostly appeal to retirees who wish to
stretch their lump sum payment to cover their remaining years, or
beneficiaries of large amounts of cash such as lottery winners.
“This
annuity comes with a return of purchase price, where on death the
principal is returned to the beneficiaries. We are targeting various
pension schemes to suggest it to their members,” he said.
The Kenindia annuity carries a minimum entry age of 40 years and a maximum of 79 years.
The minimum investable amount has been pegged at Sh500,000 attracting a market determined fixed rate of return.
The minimum annuity instalment payable to an investor is Sh3,000, either taken monthly, quarterly, half-yearly or annually.
Investors will be able to cash out after five years, although this will attract a five per cent penalty.
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