Hello readers! Welcome to GUEST POST WEEKEND and today’s Guest Post is an article by Paul Ben-Ameh.
Paul is a life insurance expert who would love to enlighten people on the needs and benefits of Life Insurance. It is also his goal to change the impression people have on Insurance in Nigeria.
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Read Paul’s article below and enjoy!
Is Taking A Life Insurance policy same as Signing My Death Warrant???
More than a few persons are of the view that taken up a life insurance policy is like signing your death warrant or not having faith in God to protect and guide you through life. The same view is held for those who write out their will. Permit me to dis abuse your mind and lay these fears to rest once and for all.
Insurance in simple terms is the management of risks or uncertainties of life; as long as we, as human beings can’t tell what will happen the next minute it therefore means that we are not in control of life’s event and the best we can do is to manage these uncertainties or risks by calculating the cost of our non existence due to death or permanent disability from an accident.
WHY LIFE INSURANCE?
The primary motive here is LOVE:
Do you really Love your Wife/Husband?
Do you really Love your Children?
Do you care about those who depend on you for their daily living?
Do you have aged parents that you care about?
Do you really want the best for your family even after you are long gone?
These questions above are the primary reasons why the NEED for life insurance cannot be over emphasised.
Devastating real life scenarios:
A. Mr. Tunde Adebisi a young and vibrant customs officer full of dreams and aspiration with three lovely children: A boy and 2 girls in the best primary school in Lagos married to Mrs Kemi Adebisi, his lovely wife and primary school teacher with a government school in Lagos state. On this fateful day, Mr. Adebisi was on border patrol at Idi Iroko and was involved in a shoot out with smugglers and unfortunately shot in d spine which results in his permanent disability. A sad case for him indeed and unfortunately he was not on any life insurance plan so the whole family fell back on the meagre monthly salary of his wife. 2 years down the line he’s not been paid his terminal benefits. How sad!
Their standard of living dropped sharply, the children were withdrawn from their private school to public school and the sad tale goes on….
B. Mr. Okeke is a civil servant who worked all his life hoping for a peaceful retirement after his 35 years working experience. He was diligent and hard working and a man of integrity. He’s always jokingly said God and his retirement benefit is his insurance. He was compulsorily retired as a Director on GL 17 after 35 years in service in 2013. His gratuity has not been paid, his 3 Sons are still in the University and he recently lost his dear mother! How sad! He’s paid repeated visits to his state’s pension board only to be told his documents are still being processed! And the sad stories still continues…..
The TRUTH is Life insurance is an investment that Lasts a life time and guarantees peace of mind and security for the insured. Please, let me quickly state that in as much as we consider life insurance as an investment with a LIFE COVER, let’s not confuse it with a savings scheme that one can liquidate anytime. In fact, taking up a life policy ensures financial discipline since you won’t have unrestricted access to your funds. For us in African Alliance Insurance Plc, a policy holder who consistently pays premiums for 2 years can access a short term loan of up to 75% of his/her contributions at a meagre 1.25% interest per month! (How cool is that?).
Having stated the sad stories that trails non life policy holders with lack of proper investment plans, let’s now outline the glowing benefits of taking up a life insurance policy
BENEFITS OF LIFE INSURANCE POLICY
1. Savings and Investments:
It helps to save money with an attractive return. It enables one to be financially disciplined.
2. Family Protection:
When the breadwinner dies, his income oftentimes dies as well, as the source of income ceases. Life insurance policy becomes the new source of income to ease the burden of the living expenses as a result of the breadwinner’s demise. Life in itself is a risk, so taking up a life insurance policy hedges the risk and the family is protected. The policy is not a death wish but a statement of commitment.
3. Children Education is Secured:
Quality education is very expensive and more costly is ignorance. The realization of educational standard a man plans for his children depends on how long he lives on his financial capacity. Hence, the need for life insurance that covers children education is only but a function of wisdom at work.
4. Creating an inheritance for your Children:
Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
5. Tax Relief for Business owners and Employees:
The policy helps the policy holder to reduce his/her tax burden as its (statutory) by law for any premium paid to be deducted from gross income before tax is applied. Hence, saves you more money.
Many workers are in employment whose future is cloudy and uncertain. Retirement savings is therefore sacrosanct.
With a life insurance policy document or certificate, one can obtain bank loan but in doing this you must be in good relationship with the bank.
8. Waiver of Premium:
Disability income is offered to a policy-holder who is permanently disabled as a result of accident or sickness and the premiums are waived also.
9. Premium payment:
Payment of premium is made easy and convenient, can be annual, semi-annual, quarterly or even monthly.
10. The policy is for everyone:
Contrary to some school of thought, that insurance policy is only for the rich and wealthy. The truth is that, it is only for the informed and information is POWER no matter your status in life!
Paul Ben-Ameh is a former Banker, Entrepreneur and A Chartered Insurer with African Alliance Insurance Plc. He is an Expert in Life Insurance Policies with a special bias for securing the future of Nigerian Children Education through policies that will see them through primary education to the highest level of tertiary education.
You can reach him with the details below:
Facebook: Paul Adah Ben-Ameh
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