Flexible Endowment Plan

A plan that combines protection against any eventuality with investment.

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Product Summary

Flexible Endowment Plan (FEP) is an insurance plan that combines protection against any eventuality with investment. The payment of the sum assured is in three installments of 25%, 25%, and 100% at 1/3, 2/3, and 3/3 (maturity) of the policy respectively.

The payment of sum assured and reversionary bonus at maturity or in the event of an earlier death of the policyholder during the period of insurance provided policy is active (i.e. premiums are paid to date). The policy duration ranges from 6, 9, 12, and 15 years with a flexible mode of premium payment options; monthly, quarterly, semi-annually, and annually.

There is an option of a loan at a competitive interest rate after 3 years provided the premiums are paid to date.

Basic Information

Cash Values

AIICO FEP acquires worth (Cash Values) after two years of running the policy with full premium payment. For every year premium is paid from the 2nd year, Cash Value is earned which stands as the net worth of the policy as at the last premium payment date.

Policy Assignment

The policy can be assigned and can be used as collateral for loans from financial institutions.

Policy Surrender

This policy shall qualify for surrender (termination) after being maintained for a period of two years, when premiums are not paid up to two years, surrender (termination) becomes impossible. The Surrender Value of this policy shall be the addition of the Cash Value and Reversionary Bonus (pro-rated) minus any indebtedness on the policy.

Reversionary Bonus

The Company shall declare a bonus (Loyalty Bonus) of 4% per thousand of sum assured for every year premium is paid by the policyholder as and when due. This is payable in addition to the final benefit on the policy at maturity, earlier death, or surrender thereby increasing the benefits.
A pro-rated bonus is paid if the policy is terminated (surrendered) after three years from inception and premium payment.

Policy Loan

An amount equal to seventy percent (70%) of the Cash Value having maintained (in terms of premium payment) the policy for three years can be granted. At the time of applying for a loan, the policy is expected to be active and premiums paid ahead. The interest rate on the loan is at a rate determined by the company, compounded annually. The loan principal and accrued interest will be deducted from any settlement on the policy.

Additional Benefits of the Plan

  • Provides for cash values on the basic policy and the declared reversionary bonus
  • Provides for policy loans up to 70% of the Cash Value after 3 years of premium payment.
  • There is a Waiver of Premium rider that pays due premiums in the event that a policyholder is unable to carry out his normal duties, consequent upon an accident or critical illness for a minimum of six months
  • Accidental Indemnity and Dismemberment Rider compensates for the loss of parts of the body or death by accident. The maximum benefit is N2,000,000
  • Permanent Total Disability rider covers a situation that makes it impracticable for a policyholder to work again. E.g. loss of both eyes, both hands. The benefit becomes automatically payable to the policyholder.


This policy is specifically designed for individuals who desire protection, investment, and guaranteed income at intervals. It has also been approved by our regulators.

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