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Chuks Udo Okonta
Pension operators under the umbrella of Pension Fund Operators Association of Nigeria (PenOp) are making frantic efforts to improve the lives and fortune of micro pension subscribers, as they hope to provide more robust incentives for contributors.
Inspenonline gathered that the operators have reached out to some financial service providers, especially insurers to work out measures for adoption of products such as health insurance, term life assurance, loss of job policy amongst others as incentives for their micro pension contributors.
Managing Director/CEO Access Pension Fund Custodian and a member Media Committee of PenOp, Mrs. Idu Okwuosa, speaking at the PenOp annual media parley today, in Lagos, said the association is working assiduously to embed robust incentives into the micro pension plan.
According to her, 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.
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.
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.
