Date: ------------------
Attention: -------------------------
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Dear Sir,
PROPOSALS ON THE CASH ACCUMULATION PLAN (CAP) & CHILDREN EDUCATION PLAN (CEP).
I am pleased to enclose a copy of our proposal on the Cash Accumulation Plan & Children Education Plan for your kind consideration.
For further clarifications please do not hesitate to call me. I am available for a meeting on receipt of a short notice.
Thank you for your co-operation.
Yours faithfully,
OPARA MARTINA
AGENCY MANAGER
08033251956
01-7375571.
INTRODUCTION
I would like to introduce our company – Aiico Insurance Plc (AIICO) and some of its products to you.
Aiico Insurance plc commenced operation in 1963 as a collection centre, and was incorporated in 1990. To date, Aiico has become the largest life. Insurer in Nigeria.
The company’s success has been the result of the ability to evaluate its potentials, set realistic goals and make necessary actions to achieve them.
In recognition of her achievements; the company has worn many laurels. In 2007 Aiico Insurance won the president’s merit award of the Nigerian Stock exchange for the insurance sector.
Aiico is reputed for quality insurance services and prompt settlement of claims. It is recognized not only for its size and delivery network, but also for the range of products it offers. We are able to tailor specific insurances to meet your needs.
Aiico has a customer- driven policy of rendering prompt and efficient services, making use of ultra modern information technology and top class professionalism we are reputed for quality insurance services and prompt settlement of claims.
1) THE CASH ACCUMULATION PLAN (CAP). The Aiico Cash Accumulation Plan is a multi benefit plan that protects and pays one even when one is still living.
The program has duration of 12years, 15yrs, 18yrs and 21yrs. The individual who is younger can choose a longer duration which reduces his premium (The regular amount he pays annually or semi annually).
2) INSTALMENTAL PAYMENTS: The insured can receive his face amount in three installments and so does not have to wait till the final maturity e.g. 12years. For a 12years plan and a sum assured (Insurance value or face amount) of N5, 000,000 for example;
1st payment - 25% of N5m - at the 4th year,
(N1, 250,000).
2ND payment - 25% of N5m - at the 8th year
(N1, 250,000).
3RD payment - N100% of N5m - at the 12th year,
(N5, 000,000)
+
plus accumulated yearly bonuses
PROTECTION
Provides for full payment of the face amount (N5, 10m, N20m) plus bonuses in the event of death of the policy holder during the period of insurance even before the first installment is due.
· If death occurs at any time after the instalment payment has just been paid, the full face amount of N5m, N10m, N20m plus all bonuses will be paid without making deductions for the installments already paid.
MATURITY BENEFITS
· It is not compulsory to take the installmental payments. The money may be left
with Aiico at a good interest. In this case the individual will receive the money
multiplied as the accrued reversionary bonuses, interest on investment of
installments and the full face amount will be paid at the maturity.
· Where the installments have been paid the accrued reversionary bonuses in addition to the full face amount (N5m, N10m N20M) will be paid at the maturity.
INVESTMENT OF INSTALLMENTS
You can use the installments anyway you like.
(a) Invest in your business or anywhere else at a good rate of return.
(b) Leave the money with aiico at a high rate of interest which will be communicated to you at the time.
(c) Use the money for children education.
(d) Use the money for other urgent needs.
LEVEL PREMIUM
While enjoying increasing protection and a growing investment fund your
premium will remain the same throughout the duration of the policy.
ACCIDENTAL BENEFITS
Accidental death benefits are offered where death occurs by accident. While a monthly income is offered for permanent and total disability.
WAIVER OF PREMIUM
In the event of disability due to sickness or accident, premiums which falls
within the period of disability and incapacitation will be waived.
The policy will however remain in force as if the policy holder was paying
premiums normally.
In order to rate a premium on the above product the following information is required from the proposed insured.
(1) - Amount of Insurance (Sum Assured)
(2) - Age
(3) - Duration
However, the following illustrations are based on examples of N10m & N50m Insurance for 18 years duration at ages 35 to 50 years.
(1) N10m for 18yrs at ages 35 – 50
AGE (YRS) | ANNUAL PREMIUM(N) | SEMI ANNUAL PREMIUM ( |
35 | 928,300 | 482,716 |
36 | 934,800 | 486,096 |
37 | 936,900 | 487,180 |
38 | 939,300 | 488,436 |
39 | 942,100 | 489,892 |
40 | 944,200 | 491,244 |
41 | 953,200 | 495,664 |
42 | 957,200 | 497,744 |
43 | 961,500 | 499,980 |
44 | 966,400 | 502,528 |
45 | 971,800 | 505,336 |
46 | 982,500 | 510,900 |
47 | 989,000 | 514,280 |
48 | 996,200 | 518,024 |
49 | 9,004,200 | 522,164 |
50 | 1,013,000 | 526,760 |
(2) N50m for 18yrs at ages 35- 50yrs.
AGE (YRS) | ANNUAL PREMIUM( | SEMI ANNUAL PREMIUM( |
35 | 4,611,300 | 2,397,876 |
36 | 4,642,800 | 2,414,260 |
37 | 4,653,300 | 2,419,716 |
38 | 4,665,300 | 2,425,956 |
39 | 4,679,300 | 2,433,236 |
40 | 4,692,300 | 2,439,996 |
41 | 4,734,800 | 2,462,096 |
42 | 4,754,800 | 2,472,996 |
43 | 4,765,820 | 2,478,226 |
44 | 4,800,800 | 2,496,416 |
45 | 4,827,800 | 2,510,456 |
46 | 4,876,300 | 2,535,676 |
47 | 4,707,320 | 2,573,896 |
48 | 4,949,800 | 2,573,896 |
49 | 4,989,800 | 2,594,696 |
50 | 5,033,800 | 2,617,576 |
CHILDREN EDUCATION PLAN (CEP)
- This policy provides payment of annual premiums for periods ranging
from 10 to 25yrs.
- Guaranteed payments of school fees in the event of death, total and permanent disablement of the parent/guardian.
- Provides for payment of a lump sum at maturity when the child enters university (or secondary school.
- Provides for return of premiums in the event of death of the child before the maturity of the plan.
- The fund may be transferred to the benefit of any other child of the policy holder in the event of the beneficiary.
- In the event of death of the policy holder.
- Future premiums will be waived
- A monthly income of 1% of the sum assured (N100, 000 monthly incomes for N10m sum assured) will be paid to the policy holder.
- On maturity, the agreed fund (sum assured) will be paid for the child’s education.
In order to rate a premium on the above product the following information is required from the proposed insured.
1) - Amount of insurance (sum assured)
2) - Age
3) - Duration.
The following illustration is based on the example of an N10m for 15yrs at ages 35 – 50yrs.
AGE (YRS) | ANNUAL PREMIUM( | SEMI ANNUAL PREMIUM( |
35 | 620,300 | 323,556 |
36 | 625,800 | 325,416 |
37 | 632,300 | 328,796 |
38 | 639,400 | 332,488 |
39 | 647,900 | 336,908 |
40 | 637,300 | 341,796 |
41 | 667,400 | 347,048 |
42 | 688,800 | 358,176 |
43 | 646,400 | 336,128 |
44 | 725,800 | 377,416 |
45 | 746,900 | 388,388 |
46 | 766,000 | 398,320 |
47 | 799,400 | 415,688 |
48 | 828,800 | 430, 976 |
49 | 860,800 | 447,616 |
50 | 896,300 | 466,076 |
