In a Deferred Annuity, you purchase an annuity (by making the initial investment) and keep saving towards it but choose to delay the income payouts (installments) to yourself for a specified period. This annuity type has two phases; the savings phase in which you invest money into the account and the income phase in which the plan is converted into a life annuity and you can begin receiving the payments.

At the expiry of the deferred period, the annuitant automatically begins to receive regular payments. It is worth noting that, as the annuitant, you can change the beneficiaries and their designated allocations as you please. Your named beneficiaries are entitled to the annuity funds (that is, the purchase price/money with interest at a predetermined rate) in your unfortunate demise as the annuity contract owner (annuitant) within the deferred period. Your length of life and the deferment period are the measures that are used to determine the benefits to be paid out to your beneficiaries under the contract.

Advantages over immediate annuity:

1. Usually, your insurer guarantees a fixed rate of interest over the deferred period. This assures you additional interest based on the initial investment over the deferred period and as a result, you end up with a higher amount per installment when you do start getting paid periodically.
2. As you advance in age during the deferred period, there will be a higher level of installment payments for the same purchase premium when you do start getting paid your annuity
3. As the Annuity Owner, you can opt to increase your initial invested purchase premium before the expiry of the deferred period by making further payments to the insurer. This will raise the level of your income installment payouts when they fall due.

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In a Guaranteed Annuity, you get to select a definite minimum period within which to receive the payouts, regardless of when you unfortunately pass on. For example, an annuity guaranteed for ten years will be payable for 10 years or life, whichever is longer. If you unfortunately pass on during the guaranteed period, then the balance of your guaranteed installments will be payable to your nominated beneficiaries or your estate. The amount of annuity you can buy depends on the funds you have available to invest, your age and gender at the time of your purchase your annuity, as well as the Guarantee Period you select.

The following are the major types of Guaranteed Annuities we offer at ICEA LION:

1. Single Life Immediate Annuity.
   This solution provides, in return for your premium, an annual/regular payment starting immediately and continuing for the rest of your life. This annuity covers only your life as an annuitant and not that of your spouse or partner. It is suitable for you if you wish to have income that is guaranteed to last for the rest of your life after retirement, no matter how long (or short) that may be.
2. Joint Life and Last Survivor Annuity
   This solution pays you a steady income for the joint lifetimes of two annuitants; yourself and for your spouse or partner. We recommend this as the most advisable option to provide you with retirement income as a married couple/partnership, since in the case of the Single Life Immediate Annuity mentioned above, payments cease if you as the principal annuitant unfortunately dies first, leaving your surviving spouse/partner with no steady source of income. Payments usually continue in full after the first unfortunate demise but sometimes reduce by approximately one-third, one-half or even one-fifth (also called reduction factor). In the unfortunate event of the demise of both the annuitant and the spouse/partner, before the expiry of the guarantee period, the balance of the guaranteed installments will be payable to the couples’ nominated beneficiaries or estate.
3. ICEA LION’s AnnuityBora
   This solution combines the best of Single Life Immediate Annuity as well as Joint Life and Last Survivor Annuity to give you the regular standard life annuity payments covered in both solutions as well as a refund of the annuity purchase price upon your unfortunate demise as the principal annuitant. The refund is payable as a death benefit to your annuitant’s nominated beneficiaries or estate. At the point of buying the annuity with return of purchase price, you as the principal annuitant can choose from the following refund options.
   Refunds option	Percentage of Purchase Price Refundable on the principle death
   1	25%
   2	50%
   3	75%

4. Reversionary Annuity This option is appropriate for provision of a retirement income you as part of a married couple or a partnership that also has young children/dependents. This product provides a steady income to you as the annuity owner and in the unfortunate event of your demise, the payments are changed to pay out to:

1. widow/er’s pension provided the spouse is still alive; and
2. Orphan’s pension[s] also known as an Annuity Certain provided the named children have not attained the specified majority age [18, 19, 20, 21, 22, 23, 24] up to the maximum age of 25.

The resultant total payments to your spouse and children reduce by a predetermined factor, called the Reversionary Factor. For example, your widow’s pension and orphan’s pension/Annuity certain may be 50% and 20% of the initial total pension respectively. If you as a couple and the named children/dependants unfortunately pass away before the expiry of the annuity’s guarantee period, the guaranteed payments are made to the nominated beneficiaries or next of kin. The factors taken into account when purchasing this product are: age of the spouses/couple, guarantee period, current age of the children and the orphan’s pension/cessation age of the children/children’s annuity certain.

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With this solution, the payments to you cease upon the occurrence of certain named events in your life, other than your unfortunate demise; for example, re-marriage or attainment of a certain age or expiry of a specified term.
The following types of Temporary Annuities are available at ICEA LION:

1. Annuity Certain
   This product secures payment for a specified period regardless of whether you as the annuitant are alive or not. In the unfortunate event of your demise before the expiry of the specified period, the periodical payments continue to be made to your nominated beneficiary(ies). It is important to note that due to increased life expectancy, this option may not be appropriate for you as a retiree as you may live longer that the selected period. The main factor considered in when purchasing the Annuity Certain is the term (period) of the annuity contract.
2. Widow/Widower’s Pension
   This product ensures that your widow/widower continues to receive the periodical payments after your unfortunately pass on; until they re-marry or in the unfortunate event of their demise, whichever happens earlier. The main factors considered in the purchase of this product are the gender and age of the widow/widower. Recent changes in the annuity market have resulted in most pension schemes adopting this as a necessary recommendation in their Trust Deeds and Rules, thereby providing for the purchase of a single life immediate annuity for your window/widower.
3. Orphan’s Pension
   This solution provides periodical payments to your orphans and only cease on attainment of a certain pre-agreed age or earlier, in the unfortunate event of the demise of the orphan. When considering the best options to financially support your orphans, it is better to take an Annuity Certain with payments ceasing on attainment of a specified majority age. The main factor considered in buying this product is the number of years to the age at which payments will cease.

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