By Favour Nnabugwu
Arrangements are in top gear on the parlety between Pension Fund Operators Association of Nigeria (PenOp) and insurers to rovide health insurance, term life assurance, loss of job policy amongst others as incentives for their micro pension contributors.
One of the incentives, which is term life assurance and also known as pure life assurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life assurance policy to terminate.
Managing Director/CEO Access Pension Fund Custodian and Head, Media Committee of PenOp, Mrs. Idu Okwuosa, told insurance & Pension Journalists in Lagos that said the association is working assiduously to embed robust incentives into the micro pension plan.
Okwuosa stated, “PenOp and the National Pension Commission (PenCom) desire a better lifestyle for micro pension contributors and are working to see that aside the benefits of retirement and contingency savings, contributors maximise other robust incentives.
Head, Micro Pension Department, National Pension Commission (PenCom) Dauda Ahmed, at the event reiterated the benefits of micro pension plan, stating that it will improve the standard of living of the elderly as it provides a regular stream of benefits at old age.
He also said it will provide access to other incentives; secures financial autonomy and independence of retirees and that contributions will be passed to the next of kin in case of contributor’s death.