Life is full of uncertainty especially in Nigeria, with large segments of the population living below the poverty line and, fraught with money worries.
Most Nigerians work extremely hard all their lives to protect and provide for their families. As such, it doesn’t make sense that when they die, they often undo their life’s work, leaving their families a legacy of loss, debt and stress.
Life insurance is a contractual agreement between an individual and an insurance provider, where the individual pays a regular premium in exchange for a payout to their beneficiaries upon their demise.
In a country with limited social security, this payout, known as death benefit, can act as a safety net for families, ensuring loved ones have the means or avoid debt and continue living decent lives despite the loss of a breadwinner.
Despite most people hoping for the best, we never know when we are going to die. Dying unexpectedly shortly after taking out a large loan, buying a car, a business or house can leave dependents not only without an income, but also in significant debt.
If surviving loved ones don’t have the skills, savings or means to manage this debt, your death could condemn them to a life of poverty despite having worked all your life to ensure their security and happiness.
More generally, in Nigeria, a country without government-provided welfare, millions of people dying each year without life insurance is placing a huge burden of care on extended families and communities.
If more people took up life insurance, resources currently consumed by caring for the indigent could be used for education, health, investment and business development.
Most Nigerians work so hard in the present to make ends meet that few have time or energy to think of the future. That said, part of being a responsible person and breadwinner demands that we consider the well-being of our loved ones after we have gone.
Despite the advantages of embracing life insurance in Nigeria, cultural taboos around discussing or planning for death is preventing many more Nigerians from taking the simple and relatively inexpensive step that can, nonetheless, make a very big difference to the future of their loved ones.
Depending on the detail of life covers purchased, in addition to providing your loved ones an income after demise.
One of the most intangible yet valuable benefits of life insurance, however, is the peace of mind it brings. Knowing that your loved ones will be protected financially after your demise can offer a sense of security and relief during uncertain times. By providing the comfort that your family will not be left destitute when you die, life insurance also brings calm and focus. Buying the calmness to grow their wealth in the security that this will not vanish or be lost at death, provides the focus in the here and now to invest, build wealth and confidently plan for the future even if this might not include you.
Life insurance is a simple tool for ordinary Nigerians to ensure their legacy by making sure their loved ones manage and thrive after they have gone.
Since most people love their families and devote their entire lives to ensuring their safety and comfort, the best and most generous thing to do is to take out life cover.
Life insurance is not, after all, for oneself. It is also much more than a financial instrument. Instead, life insurance is a gesture of love and responsibility, ensuring the future of loved ones.
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