Most people join a retirement scheme to save for life after work, but few consider the importance of protecting their loved ones in case they don’t make it to retirement. Today, many retirement benefit schemes offer life cover as an additional layer of protection, ensuring that members and their families are financially secure even in the face of unexpected loss.
A life cover is a form of insurance embedded within a retirement scheme that pays a lump sum benefit to nominated beneficiaries in the event of the member’s death before reaching retirement age. Typically, the benefit amount is determined as a multiple of your annual salary or based on the value of your contributions, depending on the structure of the scheme. This amount is paid directly to your nominated beneficiaries, helping to cover immediate financial needs.
Some schemes offer this benefit automatically, while others provide the option to top up your life cover by contributing a small additional premium. This flexibility allows members to enhance their protection as their personal responsibilities grow. In addition to basic life cover, some retirement schemes provide optional insurance add-ons to give members even greater peace of mind. These may include:
- Permanent disability cover, which pays out if a member becomes permanently incapacitated due to illness or injury.
- Critical illness cover, offering financial support upon diagnosis of serious conditions like cancer, stroke, or heart disease.
- Last expense cover, which provides quick financial support for funeral costs, often disbursed within 48 hours.
For employers, offering life cover through a retirement scheme enhances their employee value proposition. It signals long-term commitment and care, boosting morale and retention. It also simplifies administration, as the cover is bundled within the pension framework, reducing the need for separate insurance policies. For individuals, life cover provides peace of mind. It ensures that loved ones are protected financially, even if the unexpected happens before retirement. The inclusion of optional benefits like critical illness and disability cover means members are safeguarded not just in death, but throughout life’s uncertainties.
Both Cytonn Umbrella Retirement Benefits Scheme (CURBS) and Cytonn Personal Retirement Benefits Scheme (CPRBS) offer life cover as an optional benefit, with options to add on disability, critical illness and last expense benefits. These features make Cytonn Pensions ideal choices for employers and individuals seeking comprehensive retirement solutions that go beyond savings.
