PERSONAL PROVIDENT PLAN (P.P.P.)
This plan is designed to encourage individuals to save towards retirement, build up funds for specific projects or other future needs in a flexible way. There is also an optional death benefit cover to provide the lump sum benefits to beneficiaries upon the death of participant within the duration of the plan.
HOW THE PLAN OPERATES
The mimimum duration for the plan is three years. Contributions into the plan will form part of the plan’s pool of funds, which will attract a competitive yield. The contribution can be a fixed amount or a percentage of annual salary. The minimum contribution per month is Two thousand naira (N2,000.00). Payment into the plan can either be monthly. quarterly, half – yearly or yearly depending on whichever arrangement is convenient to the participant.
WHO CAN BE A MEMBER OF THIS PLAN?
Any of the underlisted can join the scheme:
- Public/Civil Servants
- Professionals/Partners in a Partnership firm
- Private Company Employees
- Self Employed Persons
- Co-Operatives Societies
- Social-Clubs
- Technicians
- Others: Students, Trainees, Unemployed Persons etc.
THE BENEFITS
MATURITY/RETIREMENT
At maturity / retirement
- Participants will recieve total contributions plus accrued fund yield after three (3) years.
- The accrued benefits at retirement can be used to purchase an annuity depending on the choice of Participants.
LUMP SUM DEATH BENEFIT
If a contributor dies as a member of this plan, the beneficiaries will be entitilesd to lump sum death benefit as defined in the terms of the contract in addition to a refund of contributions with the accrued interest.
INCENTIVES
- A Contributors will be entitled to an auxilliary free life assurance cover of two(2) times annual payment and at death, either the total contribution with accrued interest or the free life cover which ever is higher would be paid to the beneficiary.
STATEMENT OF ACCOUNT
Statement of Account shall be provided periodically to contributors.
ADVANTAGES OF P.P.P.
- It provides an easy and flexible way of planning for your future
- Built-in-life cover in the event of death
- Contributors have an option to convert lump sum contributions into annuity at retirement.
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