Annuity Plans
“Secure a Guaranteed Income for Life with an annuity plan”
An annuity is a retirement income solution that converts your pension or retirement savings into a regular stream of income. By investing a lump sum with a licensed life insurance company, you receive guaranteed payments either for life or for a specified period, helping you maintain financial independence throughout retirement.
Why Choose an Annuity?
Many Kenyans rely on family support, rental income, or business income after retirement. With an annuity you get:
- Guaranteed and predictable retirement income
- Protection against outliving your savings
- Financial security and peace of mind in retirement
- Options to provide income for a spouse or beneficiaries
- Flexible payment frequencies (monthly, quarterly, semi-annually, or annually)
- Optional inflation protection through escalating annuities
Annuity Plans
Types of Annuities in the kenyan market
1
Single Life Annuity
Provides income for the lifetime of the retiree.
2
Joint Life Annuity
Continues providing income to a surviving spouse after the retiree’s death.
3
Guaranteed Annuity
Ensures payments for a minimum guaranteed period regardless of when death occurs.
4
Escalating Annuity
Income increases periodically to help offset the effects of inflation.
5
Deferred Annuity
Allows retirement savings to grow before income payments begin.
Process
What is the process?
- Retire and access your pension or retirement benefits.
- Use part or all of your retirement savings to purchase an annuity.
- Choose the annuity option that best suits your needs.
- Receive a regular income for life or for the selected payment period.
Coverage
WHY AIVA
01.
At AIVA, we help you:
- Select a suitable annuity plan
- Determine realistic contribution levels
- Review your annuity goals regularly
Frequently Asked Questions
What is an annuity?
An annuity is a retirement income product that converts your pension savings into a regular income stream. In exchange for a lumpsum investment, a life insurance company pays you an income for life or for a specified period.
Who should consider purchasing an annuity?
An annuity is suitable for retirees who want a predictable and guaranteed income during retirement and wish to reduce the risk of outliving their savings.
How does an annuity work?
You invest a lump sum with a life insurance company, and the insurer pays you a regular income based on factors such as your age, the amount invested, the type of annuity selected, and prevailing interest rates.
How often will I receive my annuity payments?
Payments can typically be made monthly, quarterly, semi-annually, or annually, depending on the option you select.
What happens if I pass away after purchasing an annuity?
This depends on the type of annuity chosen. A joint life annuity may continue paying income to your spouse, while a Guaranteed period annuity may continue payments to your beneficiaries for the remainder of the guaranteed period
Can I withdraw my money after purchasing an annuity?
Generally, annuities are designed to provide longterm retirement income and may not allow withdrawals once the contract has commenced.
Can my annuity income increase over time?
Yes. Some annuities offer an escalation option where the income increases annually to help mitigate the effects of inflation.
Is annuity income guaranteed?
Yes. Annuity payments are guaranteed according to the terms of the annuity contract issued by the life insurance company.
How is my annuity income calculated?
The income payable is determined by factors such as your age and gender,the amount invested, the annuity option selected,whether a spouse is included and the current annuity rates offered by the insurer
How do I choose the right annuity?
The right annuity depends on your retirement goals, desired income level, family circumstances, and need for income protection. We can help you compare options from leading insurers and help you select the most suitable solution.