Low-income-earners: Explore the power and benefits of insurance

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 Wednesday, September 17, 2014 5:14 PM / Research

It is a fact that the taste of honey is always pleasant; this statement will only make sense to those who have tasted honey before now. Same thing applies to those who have experienced the good benefits of subscribing to an insurance policy in a reputable insurance firms- Please read my words, i said "reputable insurance firms".

It is a general knowledge that Nigerians hardly subscribed to insurance policy- it is a wrong trend, this remains one of the reasons why the industry is not thriving- this would a discussion for another day.

As a low-income earner, this article will not only teach you but increase your knowledge on how you can explore the power of insurance or combination of insurance products to grow your funds and protect yourself against unknown events.

From a personal experience, subscribing to health insurance and annuity scheme policy has been one of the great decisions i ever made. You will agree with me that healthcare in Nigeria is currently very expensive, even in public hospitals.

If you are the type that is health conscious like me, you will understand this very well. Health insurance has really helped me and my little family to afford some expensive health services in Lagoon hospital. Also, some savings i made into annuity scheme has come to my rescue at a point of urgent need. You may not understand how easy and helpful some insurance products can be- I encourage you to give some a trial.

The best way to enjoy insurance policy is for you to known, understand what you need and stick to it. Also consider the claims settlement process. Insurance companies and the policies they offer are not all the same, so think about more than just the price. 

Here are some of the benefits of subscribing for an insurance policy  

  • Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event.
  • Planning for life stage needs - Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite.
  • Protection against rising health expenses - going by the growing healthcare cost, health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs.
  • Builds the habit of thrift - Some Insurance products is a long-term contract whereas policyholder, you have to pay a fixed amount at a defined periodicity. This builds the habit of long-term savings. Regular savings over a long period ensures that a decent amount is built to meet financial needs at various life stages.
  • Assured income through annuities - Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life.
  • Protection plus savings over a long term - Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.
  • Growth through dividends - Some insurance products offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through annual announcement of dividends/bonus.
  • Opportunity of loans– some products give a Policy holder to have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought. 

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