“Beep, beep”. I glanced at my phone and sure enough it was a credit alert. I scrolled through excitedly and voilà! It was my first paycheck; N200,000 after tax and other deductions!
Now a million and one thoughts ran through my head; I needed a new phone, a new pair of shoes; Italian, just like the one I had seen on my supervisor, a Gucci bag …… the list was endless. I was after all single and had zilch obligations. My employer covered lunch and we had free tea everyday. Talk about living the dream.
The next morning, David my colleague and dear friend swung by my table in the company of an animated fellow, “Hey sweets, this is Alfred from XYZ insurance Plc., he as some products to show you”. I wasn’t doing a lot at the time so I followed them to the visitor’s lounge. Alfred proceeded to explain the different insurance plans available.
Now I’m Nigerian to the core and I, along with about 100m other Nigerians have apathy for insurance; maybe it’s that annoying part about annual premiums that we will never get back. Anyway, I sat there stoically waiting for Alfred’s tales to end, the shoes lady was waiting to show me a pair of Feragamo pumps.
But these insurance marketers can be persuasive, as we all know. He spun a package called “cash accumulator” and soon enough, he had me all entangled and perusing his fliers with gusto. Basically, according to the cash accumulator plan, you pay an annual premium for 10-15years and if you are still alive at the end of the tenure you get the sum assured. Also, there is a partial maturity every 5 years where you get paid 25% of your sum assured as an anniversary present which you may chose to reinvest at going interest rates. Wow, huh?
The best part about life insurance, besides enjoying accident and death cover, is that premiums are tax allowable expenses. It is really worrisome that a lot of Nigerians do not have life insurance policies; some don’t even have comprehensive car insurance!
We should take insurance seriously as it portrays us as responsible individuals in the eyes of our dependents and the society. Insurance companies have evolved with various products to meet consumers’ unique needs and yes, the pay claims promptly now. So what are you waiting for, live responsibly and wisely, take out a life insurance policy today. In about 8 years I will be alive and N10m richer! winks
This article originally appeared in Nairametrics on April 19, 2015