Life Insurance is better imagined than experienced [ Pt. 2]

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August 24, 2016 3:30 PM

This is a blog post by Ogodogun Esther... The hindrance to buying insurance, in many cases, is that you're paying for something you hope you'll never use.

Insurance cover

This article will conclude the previous article titled ‘

Benefits of Life Insurance (contd)

Funds for Future Investments

Insurance policies that are investment-linked offer bonuses that no other investment plan can offer. They help in mopping up funds for future investments such as expansion of businesses, etc.

The money invested in an insurance plan is safe and covers risks. It will yield good profits and will be paid fully as sum assured either after the completion of the term or after the demise of the insured. Both ways the money invested and the returns are safely paid back.

Other benefits include

a) Additional security to obtain loan.

b) Settling of severance package.

c) Control and monitoring of your savings.

d) Risk transfer mechanism.

TYPES OF INSURANCE

There are many types of insurance in the world. We would however concentrate on the ones available in Nigeria.

Life Insurance/Assurance

This is also referred to as Term Assurance. It is the oldest, simplest and cheapest form of Insurance, it provides life cover for the assured and his beneficiaries. The intent is to benefit beneficiaries, loved ones and dependents, if death occurs, to ensure continuing income to dependents or to cover the cost of children's education.

It is important for those with dependents and loved ones to take advantage of this protection plan. Life can end at anytime without providing any hints or clues, we are reminded everyday with the happenings around us. Dependents are left grief stricken and most times faced with bad debts unpaid rents and fees. Flow of income ends and there is no other source.

We all need financial protection and security for ourselves and dependents and getting a Life Insurance is undeniably the answer.

If death occurs during the term of the policy, the policy pays cash benefits to the named beneficiary(ies). The benefit will be paid if the policy holders dies. If he does not die during this year there will be no benefit paid and a new contract will be created.

Those with Mortgage plans are advised to get Life insurance, the thoughts of loved ones being sent out of the house due to inability to pay the Mortgage or continue with the comfortable life style is unimaginable.

Policy holders with terminal and critical illnesses can also get claims, on the occasion that they've not being diagnosed of the illness at the inception of the policy. It also covers permanent disabilities. All these can be taken care of with Life Insurance, thereby taking the cost and troubles off loves ones. People die from inadequate care and delayed treatment arising from inability to raise funds. All this can be avoided with a proper Life Insurance cover.

From the above, we would agree that Life Insurance is necessary and should be purchased without thoughts or choice, especially by those with multiple dependents. Get one today!

Remember: Life without Insurance is better imagined than experienced. Get insured today.

________________________________Ogodogun Esther is a writer/blogger. She works with Mutual Benefits Life Assurance Limited and has a passion for writing and counselling. She can be reached at esterfan2005@yahoo.com

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