The Commissioner of Insurance, Dr Justice Ofori, has urged players in the media and entertainment industry to take advantage of the numerous insurance products available, particularly annuity, to protect their retirement income security.
That, he said, would help them live decent lives and mitigate the impact of the rising costs of living that characterised retirement.
Dr Ofori said this during an engagement with some players in the media and entertainment sector to educate them on annuities introduced by the insurance companies to provide subscribers regular income during retirement.
An annuity is a contract between a person, usually a retiree, and an insurance company whereby the insurer makes a promise to make periodic payments to the owner of the product, starting mostly upon retirement.
DrOfori said the programme formed part of efforts of NIC to deepen the annuity market in the country and educate the public on annuities.
According to him, annuities were largely unknown or not properly understood by the public, hence the programme to educate the celebrities and make them advocates of the product.
Dr Ofori said the NIC had observed that a lot of people after retirement found it difficult to survive after they had been paid their lump sums from the tier two of the pension scheme, and,were therefore forced to rely on just the monthly payments from their social security contributions.
He explained that the lump sum, which if not managed well a retiree can be consumed within some few weeks or months, could be invested in annuities to provide regular income for the retiree in addition to his or her monthly income, adding that “Annuity guarantees a constant income over an individual’s life time.”
“Instead of taking your lump sum and not knowing how to manage it, it is good to give it to a life insurance company that can manage the funds and guarantee you a monthly income for the rest of your life,” Dr Ofori stated.
Veteran actor, David Dontoh, who is part of advocates selected to lead the campaign on annuities, urged players in the creative industry to take advantage of the product to save towards their retirement income security.
He said annuity could serve as a financial haven for players in the creative sector when they retire from active service.
A radio presenter, AbeikuAggreypopularly known as AbeikuSantana, for his part said although annuities were very popular in the developed countries, the situation was different in the country.
He said the NIC’s decision to create awareness on the product was a step in the right direction, as that would help people retire peacefully and live on their annuities.
“We should also demystify that notion that insurance annuity is for the formal public sector. People in the private and informal sector must also take keen interest,” the radio presenter said.
The other advocates included GyeduBlayAmbolley, OheneyereGifty Anti, Nana Yaa Konadu, Nana AdwoaAwindor, Saddick Adams, Reggie Rockstone, Stephen TettehCharway and AlhajiSalifu Abdul-Daim.
BY KINGSLEY ASARE