Life Insurance on magazine with magnifying glass. All text written by photographer/Photo credit: Google
I was never a fan of life insurance until I met Jacobs whom I referred to as Jec in this post.
Immediately after a scary turbulence on the Bonny high sea, Jec and I still felt same impulse; to chill a little more in the boat by the jetty and I could feel that Jec was scared following the near death experience we had on the high sea but his confidence was far better than mine. I went closer and stirred-up a discussion.
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The few minutes discussion with Jac which ended up with a super friendship bond in view was an eye-opener, which transversed my perception towards life insurance.
Earlier in business, some insurance marketers approached me with a handful of information to elevate my understanding of the importance of getting on with life insurance exercise.
I practically turned down all professional effort exerted towards helping my view. I could still remember that virtually every team that walked into my office with a life insurance proposal went back frustrated.
Funny enough, few minutes into a lively discussion with Jec, it was most obvious that his unstaggering confidence had it strength on his premium life insurance package with Sauce Insurance Company.
I wanted to hear more, and Jec was already amazed that a modern business man is still ignorant of the importance of life insurance and other insurance packages, so he continued with all pleasure.
I wanted as much as the definition of insurance and its packages. Catch Jecâs explanation:
âInsurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clientsâ risks to make payments more affordable for the insured.
âInsurance policies are used toÂ hedgeÂ against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to aÂ third party.
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âThere are a multitude of different types of insurance policies available, and virtually any individual or business can find an insurance company willing to insure them, for a price. The most common types of personal insurance policies are auto, health, homeowners, andÂ life. Most individuals in Nigeria, United States and other countries too have at least one of these types of insurance, and car insurance is requiredÂ by law.
âBusinesses require special types of insurance policies that insure against specific types of risks faced by the particular business. For example, a fast food restaurant needs a policy that covers damage or injury that occurs as a result of cooking with a deep fryer. An auto dealer is not subject to this type of risk but does require coverage for damage or injury that could occur during test drives. There are also insurance policies available for very specific needs, such as kidnap and ransom (K&R), medical malpractice, andÂ professional liability insurance, also known asÂ errors and omissions insurance.
âWhen choosing a policy, it is important to understand how insurance works. Three important components of insurance policies are the premium, policy limit, and deductible. A firm understanding of these concepts goes a long way in helping you choose the policy that best suits your needs.
âA policyâs premium is its price, typically expressed as a monthly cost. The premium is determined by the insurer based on your or your businessâs risk profile, which may include creditworthiness. For example, if you own several expensive automobiles and have a history of reckless driving, you will likely pay more for an auto policy than someone with a single mid-range sedan and a perfect driving record. However, different insurers may charge different premiums for similar policies; so, finding the price that is right for you requires some legwork.
âThe policy limit is the maximum amount an insurer will pay under a policy for a covered loss. Maximums may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also known as the lifetime maximum. Typically, higher limits carry higher premiums. For a general life insurance policy, the maximum amount the insurer will pay is referred to as the face value, which is the amount paid to a beneficiary upon the death of the insured.
âThe deductible is a specific amount the policy-holder must pay out-of-pocket before the insurer pays a claim. Deductibles serve as deterrents to large volumes of small and insignificant claims. Deductibles can apply per-policy or per-claim depending on the insurer and the type of policy.
âPolicies with very high deductibles are typically less expensive because the high out-of-pocket expense generally results in fewer small claims. In regards to health insurance, people who have chronic health issues or need regular medical attention should look for policies with lower deductibles. Though the annual premium is higher than a comparable policy with a higher deductible, less expensive access to medical care throughout the year may be worth the trade-off.â
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I took a deep breath as Jec said the last word, and popped up a question âcould it be correct to say a business man who hasnât successfully insured his life, cars and properties is simply on a risky gamble seat.
âExactly!â Jec affirmed, and hurried out the boat after exchanging contact with me with a firm promise of leading me to his insurance company so I could pick-up a suiting plan.
In some countries insurance for cars are compulsory, like Nigeria. But I have my doubt if those whoâd carried out car insurance on their cars knows exactly how to benefit from the insurance companies the used.
No oneâs fault though.
But there should be sensitization to help put the public in the know. I can boldly say an average man on the street doesnât have a sound knowledge of the benefits of insuring life and properties.
Just last week, Jec called me up for a meeting so we could catch up with his agent after a conference in Libodo Hotels and Suite.
Weâd met at exactly 3pm after the conference, Jecâs agent, Kofi, a Ghanaian looks presentable and interesting. So I was sure doing business with him would be as much interesting as he does look.
Kofi presented all the packages his company offers. I went for premium on life, cars and houses. I did made clear my intenton to pick up other sound packages with time. And then the meeting rounded up with a warmth smile and exchange of handshakes between Kofi, Jec and I.
Only if one could tell the future, then right things only would be done.
Just three days after Iâd concluded on the insurance deals with Kofi including my car insurance. I drove out of a shopping mall and headed downtown at about 1pm, with a moderate speed of about 40 kilometres per hour, just on a side lane of the seemingly busy road, a truck with a full load of cement lost concentration and hit my Range Rover 2017 model car to a bad squeeze.
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After a brief argument with the truck driver who obviously cannot afford a set of plug for the Range Rover Engine I called Jec and told him my predicament.
To work on briefing a long story short as Jec showed up and we informed the insurance company of the incident, I was happy that the car had Insurance coverage before the incident.
I kept saying thanks to Jec for this live-wire, because I may have shouldered the outrageous expenses of bringing my car to normal all alone.
I canât relate enough how much I hated the days of ignorance when I lived in a shadow world where I thought insurance was only a sap of fund by some smart corporate dudes whoâs experts in using corporate finance terminologies coined the insurance companies.
Now I can boldly speak in favour and not against insuring lives and properties by anyone who can afford it because it surely cost a thing.
Choosing which insurance company to patronise is completely at owners discretion and does not limit the importance or benefit but may vary the packages available, since companies operate differently.
Surfing through the internet may also aid persons who wish to pick up a compatible insurance plan from an insurance company nearest to them.
Iâm also sure that every insurance company have their contact address and mobile on their websites, so that could reduce the stress of fetching a quick response from an insurance company.
Iâm now thinking that working on compiling the list of insurance companies in Nigeria, USA and South Africa wouldnât be such a whack.
Till then hope you get encouraged enough to pick up a soft plan that suits your income.