Life Insurance Eases burdens

Life Insurance Eases burdens LIFE insurance is something not commonly discussed about in Nigeria and the rest of Africa as elsewhere in the world. Perhaps this is due to life insurance’s complexity, the posture of those who sell it or merely our preference for avoiding the topic of our own demise.

But armed with the proper information, you can simplify the decision-making process and arrive at the right choice for you and your family. Life insurance is one of the pillars of personal finance, deserving of consideration by every household. If anyone relies on you financially, you need life insurance. It is virtually obligatory if you are a spouse or the parent of dependent children.

Life insurance does not simply apply a monetary value to someone’s life, instead, it helps compensate for the inevitable financial consequences that accompany the loss of life. Strategically, it helps those left behind cover the costs of final expenses, outstanding debts and mortgages, planned educational expenses and lost income. But most importantly, in the aftermath of an unexpected death, life insurance could lessen financial burdens at a time when surviving family members were dealing with the loss of a loved one.

In addition, life insurance can provide valuable peace of mind for the policy holder. That is why life insurance is vital for the bread winner of a single-income household but still important for a stay-at-home spouse. It is surprising and disconcerting that only about two per cent or 200,000 of the 200 million Nigerians are insured. In the Nigerian society, there is so much reliance on the benevolence of family system that many believe can come to the aid of the children when the bread winner dies.

The National Insurance Commission needs to push for creating awareness on this. It can start by being part of, maybe, three-month nationwide inclusive insurance campaign in the country. Such a step will focus on creating more awareness not only around their products but generally making more Nigerians aware of the benefits of having one’s life insured.

This may be dangerous, particularly with the trend in the economy where it is difficult for many to carry their own responsibilities, not to talk of adding additional burden by supporting children of loved relatives. So it is wrong to assume that support will continue for the deceased’s immediate family after the death of loved one.

While that is part of the cultural lifestyle, we need to recognize the significance of life insurance, as a vital form of financial protection in the event of accident and sudden loss of life. Life insurance can be confusing for many. The Nigerian insurance industry is not helping matters in this regard. And most of the players seem to have “a build-it-and they will come” mentality. So they hardly advertise their products, not educate and encourage people on the issue of life insurance .
There is now need for advocacy at encouraging young people to move away from the dangerous path of leaving things to chance , take responsibility of their own lives by getting insured. This is for two reasons: taking care of the family one has left behind or when one dies – that insurance caters for death expenses. The National Insurance Commission needs to push for creating awareness on this. It can start by being part of, maybe, three-month nationwide inclusive insurance campaign in the country. Such a step will focus on creating more awareness not only around their products but generally making more Nigerians aware of the benefits of having one’s life insured. Some banks are also in insurance business. These banks should be commended for their move in joining the industry. They have strong marketing communication experience to deploy in creating awareness about life insurance through rigorous campaign.

With such campaign, the Nigerian insurance industry may be able to break down the silence through its various marketing campaigns which has always been detailed. We do not know when we will pass away. It could be today, tomorrow or 50 years from now, but it will happen eventually. Of course, no amount of money could ever replace a person.
But more than anything, life insurance can help provide protection for the uncertainties in life. Without a doubt, having life insurance coverage will bring you and your family peace of mind.
It is one thing you can be sure of and you’ll no longer have to question whether they will be taken care of when you are gone.