Mr Dayo is a successful business owner with cooperative employees. He loves and cares for his family very much. To make ends meet, Dayo, like many other bread winners, go through unexpected challenges that come with its own financial risk and losses.
Ms. Felicia happens to be a single and independent lady, with a great acting career. She also has siblings with families of their own. She enjoys a measure of comfort that many of her contemporaries find difficult to attain because of rising economic depression. Felicia has a very positive outlook in life and believes life would always bring her comfort so long as she is optimistic and hardworking.
Now Dayo’s family are struggling to cope emotionally and economically with his sudden demise as the soul bread winner. His employees who are also bread winners or have dependents, find themselves unexpectedly displaced financially. Felicia is struggling with a life threatening disease that is draining both her resources and her siblings’.
The above scenarios illustrate incidents common in life. Both Dayo and Felicia may or may not have considered what impact their untimely death may cause to those dependent on them and their loved ones. Sometimes, we may fall into a similar pattern of unawareness. For many of us, the thought of thinking through what our families or dependents may go through if we die untimely is scary indeed. Every day we fight our fears through faith and hope. True, life requires faith and hard work to live against the odds but it also requires being realistic about the possibility of unforeseen outcomes that characterise todays uncertain world.
In Nigeria, many today tend to shove aside the need to get a life insurance, or may already have one obtained through their employer but are not fully aware of the advantages it plays for both married and unmarried individuals. What is a life insurance and what types are available? What may be the reason why some may be reluctant in purchasing a life insurance? Are the reasons justifiable? What are the benefits in getting one? These are some of the questions needed to evaluate how important a life insurance is and how necessary it is to obtain one.
What is a Life Insurance?
Life insurance is an agreement or contact between an insurance policy holder and an insurance company, in which the insurance company agrees to pay a designated amount in exchange for small regular payments by the policy holder. A policyholder or the one paying for the insurance policy could be married couples, family heads, guardians or single individuals without dependents. Usually, a life insurance guarantees the financial safety of a family, dependents, or benefactors from economic loss if the insurance policy holder dies untimely or is incapacitated. In this case, the insurance company agrees to pay the family or benefactors a designated amount, usually substantial to cover financial loss. Life insurance policies vary by terms depending on the insurance company.
There are two kinds of life insurance: Term Life Insurance and Whole Life Insurance. A term life insurance protects one for a limited amount of term or time e.g. five to ten years. That means the policyholder is obligated to regularly pay small amounts known as premiums to the insurance company for a similar five to ten years. If the policy holder dies after exceeding the duration of term, the benefactors get nothing from the insurance company or insurer. Renewal of term policies can cost more at each renewal.
Whole life insurance is the kind of life insurance sold by many life insurance companies. This kind of policy protects one for a lifetime generally a one hundred year period.
Reasons why some people may be reluctant
However, not all investments lead to a predictable outcome as a life insurance. If the welfare of dependents or beneficiaries where of primary importance, then one could also view a life insurance as an investment to financially protect the beneficiaries.
In Nigeria, there are many insurance companies that are selling life insurance and certainly with different terms and policies that could fit just about every kind of budget. A careful market research would help you obtain something reasonable. Remember a stich in time saves nine.
However, such policies can have their own disadvantages since many employers offer supplementary life insurance policy that provide modest coverage that may not meet up with the needs of the benefactors. Additionally, such policies would no longer hold for the individuals if they leave their workplace.
Usually, there are insurance agents or company representatives that are committed to a particular insurance company. They can help enlighten one on the basics and help one decide on just how much insurance one needs to purchase.
Though one may not have dependents, the fact remains that there are still expenses that must be covered in the event of an untimely death or disability. Family and friends, without doubt, would undergo stressful financial times when such expenses are not planned or finances are limited.
If you sometimes fill that way, then it would be great to get to know as many policyholders as possible and observe them to confront your fears.
Benefits of having a life Insurance
The benefits of having a life insurance are numerous and applicable to both persons with or without dependents. . Here are some good reasons to purchase a life insurance.
Should you get one?
Many of us may not like the examples of Dayo and Felicia mentioned earlier in this article to be applied in our case. To avoid the effects of such financial distresses that accompany an untimely death, it is necessary to consider having a life insurance. So long as we live in a world full of uncertainties, everyone living has a probability of dying some day or going through unforeseen circumstances that may be life threating. The fact remains that we owe our dependents love and a sense of duty. So never let trivial excuses stop you from preparing for the unexpected.
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