Buying adequate insurance

One of the lessons to be learnt from the Coronavirus pandemic is the need to have adequate insurance cover. Insurance plans bring little return on investment, so we do not recommend them as optimal investment assets. However, they are essential for the protection of our wealth. Without insurance, we would need to liquidate assets to meet financial emergencies, but with insurance, our assets are preserved because the insurer pays for the emergencies. Apart from the more obvious coverage for life and health, there is now a need to consider other types of insurance protection against the emerging perils we are facing currently. Some of these additional protections may be in form of add-ons to existing policies.

Let us look at the typical life insurance policy. The policy holder contributes the premium for the stipulated time; if he outlives the contribution period, he collects the benefits, if he does not, his beneficiaries collect the benefits. But life policies now have many varieties which should be included in order to cover all the likely perils a person could face. There is the Unemployment Clause – in this instance, the Insurer would not penalize the policy holder if he is unable to pay his premium due to unemployment. In some policies, the insurer would continue to treat the policy as if premium is up to date. In other cases, the insurer pays the policy holder a monthly stipend for a stipulated period or even until he is able to find work again. Disability Clause, in this case, the insurer pays the policy holder a monthly stipend if he becomes disabled and is unable to work during the contribution phase of thepolicy.

Some of us have Group Life Insurance policies, which we were automatically registered for by our employer when we resumed working for the organization. For this policy, the next-of-kin registered with the HR department is automatically made the beneficiary. Some of us started working when we were single and unmarried. Have we updated our next-of-kin? Should your beneficiary continue to be your younger brother, when you now have a wife and three teenage children? Let us ensure our records are up to date both with our employer and our insurers.

Health Insurance – Some of us are blessed with jobs that provide healthcare for us and our dependents. For others, there is a need to make adequate provision for our healthcare. With the introduction of the National Health Insurance Scheme, came the Health Management Organisations HMOs. These have introduced different healthcare plans with value-added services. From as low as N3,500 per month, comprehensive healthcare can be provided for a family.

There are HMOs that provide telemedicine services that allow clients to receive medical consultations from doctors in the comfort of their homes via their mobile phones. This removes the stress of going to the hospital and waiting to be attended to. With the COVID !9 pandemic lockdown that restricts movement and also the very real risk of being infected if you go to a hospital, getting a Health Insurance policy with a telemedicine facility has become necessary.

With the easy payment models and creative value-added services, we have no reason not to provide comprehensive healthcare for our families. However, we must be careful to read what our policies cover choose the policy that meets all your family’s needs, so you are not left looking for money when medical emergencies occur.

No one can foresee untimely death but preparing adequately for dependents takes away some of the pain associated with the loss of a breadwinner. An education plan can help ensure that children get the level and the quality of education they would have received if both parents were alive. Education plans are available from investment firms, trust companies and insurance providers. A plan from an insurance company has the added benefit of full payment in the event the parent dies before contribution to the plan is complete. However, non-insurance companies have started adding that clause to their education plans. Ensure you read the fine prints to confirm that you are getting what you are paying for.

SMEs need to look at bespoke policies or add-ons that protect their businesses from today’s perils – business interruption, force majeures, supply chain failures, market failures, professional liability, workers compensation and others.

Finally, we must exercise due diligence in selecting our Insurer.And because these policies are long term (over 25 years for life policies), fresh due diligence exercises must be done periodically afterwards to confirm that the Insurerremains financiallycapable to protect our lives, our dependents and our wealth.

Happy Investing.



Buy and read digital replicas of your TRIBUNE titles by subscribing through E-VENDING

COVID-19: Afe Babalola Offers 15-Point Prescriptions For Resumption Of Schools
The Founder and Chancellor of the flourishing Afe Babalola University, Ado-Ekiti (ABUAD), Aare Afe Babalola (SAN), has offered prescriptions on how the Federal Government can reopen schools and universities … Read full story

60-Year-Old Nigerian Woman Who Was A Nurse For 40 Years Dies Of Coronavirus In UK
An ‘exceptional’ mother-of-four nurse who devoted her life to terminally-ill children has become the latest healthcare worker to be killed by coronavirus in Britain, the Daily Mail of UK reported. Eyitolami Olaolorun had been a nurse for 40 years, most recently working at Wellington Hospital, a private centre in St John’s Wood… Read full story

COVID-19: Buhari, APC Betrayed Almajarai, Poor Nigerians ― PDP
President Muhammadu Buhari and the ruling All Progressives Congress (APC) have completely betrayed almajarai and other downtrodden, poor and vulnerable Nigerians after using them to get into power in 2015, the Peoples Democratic Party (PDP) has alleged… Read full story

Unpaid Salaries: Polytechnic Staff Seek Akeredolu’s Intervention
Staff of the Rufus Giwa Polytechnic, Owo, Ondo State have called on the state governor, Mr Rotimi Akeredolu to intervene in the crisis in the institution, over the non-payment of their salaries for six months by the management of the institution… Read full story

I Rejected N8m To Promote Bleaching Creams, Says Ex-Big Brother Naija Housemate, Khafi Kareem
A former housemate of reality show, Big Brother Naija, Khafi Kareem, on Monday, May 11, spoke on how she rejected the sum of N8 million for promotion of bleaching creams from a company producing them. Khafi, who had a brush with her employer, the British Metropolitan Police, for taking part in the reality show and who… Read full story

The Wasting Fruits Of Benue
From time, Benue has maintained its prominence of being the food basket of the nation. It simply implies that the state is blessed with arable farmland. Aside this, it also plays host to the second largest river in the country, River Benue as well as other streams that run throughout the year, thereby providing accessible… Read full story

POLITICS: Predatory Politics Is The Norm Since The Passage Of Awo —Shonibare
Apart from Chief Obafemi Awolowo’s photograph being hung in the most prominent part of the wall in the main sitting room of our home and the fact that, even at primary school (Oke- Ira Primary and Preparatory School- which was the preparatory school of St Saviour’s School, Railway Compound, Ebute- Metta)… Read full story

Unity Meets Industry: How Igbajo People Built Century-Old Plank Business In Ibadan
Although Bodija timber market is the headquarters for the purchase of timber in Ibadan metropolis, the Sango market could be called a mega market in terms of size, operation and system of administration. The history of Sango timber market is the history of Igbajo community in Ibadan since the 1920s. Igbajo is ancient… Read full story

Infections Of The Infectious Diseases Bill
On October 5, 2018, the National Assembly passed the Nigeria Centre for Disease Control Bill, which was assented to by the President and thus became an Act on November 8, 2018. This Act is part of the laws of the Federal Republic of Nigeria, being an Act of the National Assembly, which is comprised of representatives of… Read full story

You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More