RETIREMENT PLANS
An Annuity is a life assurance product which mandates ZSIC Life Plc to make a series of future payments to a purchaser (annuitant) in exchange for the immediate payment of a lump sum or a series of regular payments,prior to commencement of the annuity.
CONTACT USThere are two distinct types of annuities offered by ZSIC Life Plc
This is a personal pension plan which pays an annuity on the selected retirement age. Premiums paid go towards purchasing an annuity. The Annuity is guaranteed for a selected number of years and thereafter it is payable for
life.
Upon reaching the selected retirement age, one third of the purchased annuity is commuted for cash while the
balance is paid as regular income monthly, quarterly,half yearly or yearly, depending on the choice, for the guaranteed period.
In the unfortunate event of death of the annuitant before payment of the annuity commences all premiums
paid are refunded with interest to the estate. However,if death occurs after payment of the annuity has commenced, the balance of the annuity is paid to the estate. If the annuitant survives the guaranteed period a reduced annuity is payable for the entire lifetime of the annuitant.
The immediate annuity product is targeted at individuals who wish to convert a lump sum benefit into an income stream. Typically the prime candidates for such a product are pension fund retirees who are
required to purchase a pension.
The annuitant pays a lump sum to ZSIC Life Plc which is then paid as regular income with interest monthly, quarterly,half yearly or yearly, depending on the choice, for the guaranteed period.
In the unfortunate event of earlier death during the guaranteed period when the annuity is being paid, the balance of the annuity due is paid to the estate.However, should the annuitant survive the selected guaranteed period, a reduced annuity is payable for the entire lifetime of the annuitant.
Immediate Annuities can be categorised as follows:-
With-Profits Annuities
The with-profit annuity allows the policy holder t participate in the anticipated future profits of the with-profit annuity pool. Future profits are largely anticipated from investment returns. ZSIC Life Plc will declare pension increases at the end of each year depending on the underlying performance of the
with-profits annuity pool.
Guaranteed Annuities
Under the guaranteed annuity, the level of future annuity payments is guaranteed at inception. Inparticular the level of pension increases is fixed.Pension increases are granted on the policy anniversary in line with the policy conditions. The minimum increases is 0% i.e. no increases, with a maximum increase of 75% of the pricing interest rate.
Can the Annuity be taken up jointly?
A joint life option can be selected whereby benefits will be payable to the surviving spouse following the death of
the policy holder. The proportion, which continues to the spouse, is normally 50%, 75% or 100% of the pension that
the policy holder was receiving immediately prior to death. The proportion applies after any guarantee period has expired.
Should the spouse happen to die before the policyholder, then the spouse’s pension falls away i.e. it is only payable if the original nominated spouse is alive.
At what age can one take up the policy?
The maximum age at entry of both the policy holder and,in the case of a joint life pension, the spouse is 75.
What is the minimum purchase price?
The minimum purchase price for the Annuity products isK5,000.00.
At what frequency are payments made to
the beneficiaries?
Various annuity payment options are available, namely monthly, quarterly, or annually. The payment frequency
must be selected at inception and should only be changed under exceptional circumstances
Over what period are payments guaranteed?
A guarantee period can be selected whereby annuity payments are guaranteed to occur for the selected
period. The guarantee period must be an integer number of years (normally 5 or 10). Should the policy holder die during the guarantee period, the annuity payments will be made to his or her estate until the guarantee period is completed.