Insurers woo Nigerians to life products
Insurance sector players are calling on prospective policyholders to subscribe to life insurance products with a token premium, noting that the Sum Assured on those policies far outweighs the premium paid.
The experts also believe that the future of insurance sector lies in life insurance business as there are enormous potentials to suggest that the future looks bright for the life arm of the insurance industry in the country.
The Executive Director, Leadway Assurance Company Limited, Adetola Adegbayi, on her part, charged Nigerians to subscribe to life insurance products such as Term Life Assurance product, saying, ‘people should form the habit of buying what they cannot save, through term assurance policy.’
Adegbayi stressed that with little premium, people can buy this unique product that has a minimum Sum Assured of N1 Million, urging the middle and low income earners to see this package as an opportunity to enrich their lives.
Using Leadway Term Assurance product, as an example, she said, the plan is a simple but flexible life insurance product that pays out a lump sum if death occurs during the period of cover.
You choose the amount of that lump sum and the length of cover, and your premium is calculated accordingly, she said.
“Take a little money as premium to get N10 to N15 million Sum Assured. If anything should happen, your family has about N10 Million to fall back to. It takes care of school fees of your children and other financial needs. May be, you can buy N10 Million Sum Assured with N50,000 premium, for example,” she said.
Meanwhile, the former Minister of Finance, Mrs Kemi Adeosun, had said that life insurance holds the key to wise financial planning and is panacea for poverty alleviation among Nigerians at all levels including grassroot dwellers.
She said neglecting life insurance, a common habit by many Nigerians, is equal to building one’s foundation on a shallow ground.
Adeosun, who was represented by the Deputy Commissioner for Insurance, Finance and Admin, George Onekhena, at a conference in Lagos, urged Nigerians to build up a solid financial plan for future through life insurance planning.
She said excuses of non-payment of claims often put up by many Nigerians for not buying insurance amounts to self deceit, adding that, they can make enquiries on the particular life insurance they want to buy as well as how to go about it.
She also said those in doubt could engage the service of insurance brokers for professional insurance advise .
She said this has become necessary because no body 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 as it is the foundation to every wise financial planning.
However, the Managing Director, Royal Exchange Prudential Life Assurance (REPLA), Wale Banmore, said the future of insurance in Nigeria is the life business, urging investors to invest in this arm of insurance business.
Speaking at a forum in Lagos, he regretted that the potentials in the life business has not be fully tapped into, promising that his company is going to leverage on this potentials to grow its bottom line.
According to him, “The future of insurance in Nigeria is the life business, which has not been fully tapped into and for Royal Exchange Prudential to seek market leadership, an effective and efficient policy of customer service, loyalty and retention must be in place in the organisation.”
The attainment of these goals, amongst others, he said, would impact positively on the fortunes of the company, increase its profitability in the years ahead, improve its service delivery to its existing clientele as well as enable the company to win new retail and corporate accounts, thereby, boosting its premium income and market share.
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