Government appeals for adoption of life insurance
With various development initiatives in the country, Nigerians need to build up a solid financial plan for future through life insurance planning, the Federal Government has appealed.
The Minister of Finance, Kemi Adeosun, disclosed this at the third NAIPCO conference, with the theme: “The Role of Stake Holders in Developing Insurance and Pension Sectors.
The minister, who was represented by the Deputy Commissioner for Insurance, Finance and Administration, George Onekhena, said life insurance holds the key to wise financial planning and is panacea for poverty alleviation among Nigerians at all levels, including grassroots dwellers.
She urged Nigerians not to neglect life insurance, even as it is a common habit, noting that it is equal to building one’s foundation on a shallow ground. Adeosun stated that citizens should rather be making enquiries on a particular life insurance policy that would be beneficial, as well as how to go about it.
She also said that those in doubt could engage the services of insurance brokers for professional advise, adding that this has become necessary because nobody knows the day of his death and it will be disastrous for anyone to leave dependents without benefits.
“Every Nigerian buys one house hold item or the other at any time and you don’t enter the market and start making your purchases.
“You make enquiries before going to market, in like manner, in your life insurance decisions, you can take time to ask questions on the life insurance policy you want to buy. Nobody knows the day of his death, so life insurance is critical, life insurance is foundation to every wise financial planning”, she stated.
Speaking on the challenge facing insurance and pension operators in Nigeria, she said people hardly tell the public when they get benefit from these two sectors, citing instance of quantum of retirement benefits paid on monthly basis by Pension Fund Administrators (PFAs) to retirees and quantum of claims paid in yearly by insurance firms.
NAIPCO conference is the only forum that brings both pension and insurance operators, their regulators and stakeholders together to discuss their affairs.
The conference played a key role in settling the crisis that arose last year between the two sectors in annuity administration and management.