This plan enables you to save as low as N5,000 monthly with a guaranteed interest rate of 5% annually and a life cover of up to N1m. This Plan gives the policy holder a double edge.
. Better yeild on savings
. Free Life Insurance Cover
Key Features:
1. Free life cover up to N1m
2. Can be used as a target savings for specific future needs
3. Minimum term of 5years
4. Monthly savings as low as N5,000
5. Premature withdrawal attracts a 15% duduction of fund value as penalty
6. Guaranteed Interest Rate of 5% per annum.
Contribution Table:
Under this paln, the policy holder gets the following life cover according to their monthly contribution:
Monthly Contribution (N) Free Life Cover (N)
2,000-9,999 200,000
10,000-24,999 500,000
25,000-49,999 750,000
50,000 and above 1,000,000
Interest Rate Calculations
Example: Given that Mr Okon picks a union assured savings plan of N5,000,000 for a period of 5years. Calculate his interest rate at the end of the policy.
Solution:
Sum Assured = N 5,000,000
Term = 5years
5,000,000
Annual Premium = ......................... = N1,000,000
5
1,000,000
Monthly Premium = ......................... = N83,000
12
1st Year Interest = 5% of Annual Savings
5
1st Year Interest = ......................... X 1,000,000
100
1st Year Interest = N50,000
2nd Year Interest
Total Savings = N1,000,000 + N50,000 = N 1,050,000
2nd Year Interest= 5% of Total Savings
5
2nd Year Interest= .......................... X 1,050,000
100
2nd Year Interest = N 52, 500
3rd Year Interest
Total Savings = N1,050,000 + N52, 500 = N 1,102,500
Third Year Interest = 5% of Total Savings
5
3rd Year Interest= ...................... X 1,102,500
100
3rd Year Interest= N 55,125
4th Year Interest
Total Savings = N 1,102,500 + N 55,125=N1,157,625
Fourth Year Interest = 5% of Total Savings
5
Fourth Year Interest= ................................ X N1,157,625
100
Fourth Year Interest= N 57, 881
5th Year Interest
Total Savings = N N1,157,625 + N N 57, 881= N1,215,506
Fifth Year Interest = 5% of Total Savings
5
Fifth Year Interest= .......................... X N1,215,506
100
Fifth Year Interest= N 60,775
Total Interest Accruable to the Sum Assured of 5, 000,000 savings for 5 years becomes sum of annual interests
N50,000 + N52,500 + N55,125 + N57,881 + N60,775 = N 276,281
Please watch out for the next article.
*Michael Onjewu is a Risk Advisor with Union Assurance PLC. 07032879723, Tweet at him @MikoOnjewu
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