TARGET SAVINGS PLAN
Product Description
Target Savings Plan is an investment arrangement through which funds can be accumulated for specific future needs while enjoying the benefits of a life assurance.
The funds are managed through a dedicated investment account into which allocated contributions and interest are credited.
The plan also provides you with additional life assurance cover based on the level of your annual contribution.
| Monthly Contributions (Naira) | Life Assurance Cover (Naira) |
|---|---|
| 10,000 – 19,999 | 250,000 |
| 20,000 – 49,999 | 500,000 |
| 50,000 – 99,999 | 750,000 |
| 100,000 & Above | 1,000,000 |
A dedicated investment account is opened for each policyholder
- Allocations for investment and interests are credited into the account
- Life assurance cover is provided for the policyholder based on level of initial annual contribution
- Policy duration is between three and five years
- Contribution/premium can be paid annually, half yearly, quarterly or monthly
- Contributions can be increased within the policy term
- Minimum contribution is N10,000 per month
- On death of life assured before maturity/target date the life cover plus the amount in the Investment Account become payable
- If regular contributions/Premiums are not paid as and when due; life cover ceases
- At the end of the investment period, the policyholder receives the total amount credited into his investment account plus interest as a lump sum.
- Lump sum may be converted to annuity at the request of policyholder.
Life Assurance Cover
- This policy provides additional life cover of an amount up to N1, 000,000.00 (One Million) depending on the monthly contribution as illustrated in the table below:
Monthly Contributions (Naira) | Life Assurance Cover (Naira) |
10,000 – 19,999 | 250,000 |
20,000 – 49,999 | 500,000 |
50,000 – 99,999 | 750,000 |
100,000 & Above | 1,000,000 |
N.B. Provides Additional Accident Death Benefit of N500, 000 for contributions with monthly of N100, 000 and above
INTEREST ON INVESTMENT ACCOUNT
Interest payable on investment account of policyholder is 2% above average annual interest rate offered on savings accounts by the top five banks in Nigeria.
WITHDRAWAL CHARGES
If the policy is surrendered before the third year from commencement date, withdrawal charges are levied on accrued interests only. No withdrawal charge is level on all allocations credited into investment account of the policyholder
GOAL BASED SAVINGS
The unique saving feature of this policy is to achieve some target goals in life which include the following
- Buying an asset (i.e. land, house, cars, household equipments etc)
- Children’s marriage expenses, vacations or holidays expenses
- Fund to purchase annuities after retirement etc
- Start up fund for personal business, Payment of school fees
- Birthday celebration etc
- No withdrawal charge is level on all allocations credited into investment account of policyholder if regular contributions/Premiums are not paid as and at when due; life cover ceases
- If the policy is surrendered before the third year from commencement date, withdrawal charges are levied on accrued interests only.
