Get Down to Basics- Why Insurance is the Need of the Hour

4 min read

“Insurance business remains unviable and its products hard to sell in the Nigerian marketplace.”

The recently concluded Insurance Industry Consultative Council (IICC) raised this concern which insurance experts are trying to solve. Why then are we trying to educate you about insurance? Here is the thing, insurance is not a product that one buys or doesn’t buy based on preferences, it is the product that one buys based on needs.

Nigerians love large families. A large percentage of even the nuclear families in Nigeria has more than two children as part of the family. The employment of women is still low vis-a-vis men in Nigeria. Add to that, the women employed are mostly working in informal sectors and do not have it easy balancing work and home. Which leaves us to the crux of the situation, there is only one stable income in nuclear families. Extended families may paint the same picture, considering it mostly comprises elders in the family.

We never wish for any mishap to fall upon us or our loved ones. But how are Nigerians prepared in the event of that? Would you be able to maintain the same lifestyle for you and your children once the earning member of the family is not there? Would you be compromising on not just basic needs but also the education and other necessities of your children if you are no longer drawing the same household income? Are you prepared for medical emergencies or losses like a vehicular accident?

If your answers to the above questions do not make you happy, an insurance policy is what you should be looking at. An insurance policy, whether it is life, health or automobile, minimizes the risk of damages or loss. It helps you stay prepared at least financially in the event of a loss. When you are put in a situation in life where the mental stress and emotional anxiety of a loss (especially of a life of a loved one) is too hard to handle, worrying about financial stability should be least of your worries.

Here are some basics you should know about insurance and how to go about them:

1. Do your homework

Even if we buy a simple product from the market we do our research. Whether it is the recommendation of a loved one, customer testimonials, a reliable source or the status of the company. These help us make an informed choice. Similarly, for an insurance policy, a lot of information on the current players and the market is available online. You can check with the experts at VConnect as well if you think a reliable source can answer some of the questions you are finding it difficult to source.

2. Know from experience

Your closed circle of friends and family are the first people you go to when it comes to an advice. Check in your circle whether someone has an insurance policy. Whether it is travel insurance for frequent travelers, health insurance, life insurance, automobile insurance or transit insurance for someone in a business. Understanding the choices of people in similar economic setup helps make a decision easily. A number of companies provide health insurance for their employees and their families. You can check in your circle if that is the case, then what insurance company does their workplace rely on and why.

3. Multiple policies from the same vendor

It is always better to look at multiple policies from the same vendor. For example, you can get life insurance and health insurance from the same vendor. Additionally, it gives you an idea of the depth and stature of the organization you are dealing with. The number of policies with customization option helps you to get an ideal policy suited for you and your family.

4. Know the kind of policies

Read every little detail about the policy that interests you. For example, for a health insurance policy, you need to understand the diseases that are waived or a pre-existing condition that compromises your cover. The network of hospitals the insurance policy is associated to plays a pivotal role at the time of claiming it. Be sure the network of hospitals are health care centers that you trust and would rely on for your family’s health.

5. Get every detail

We once learned while growing up that asking questions is a good thing. It is the same here. Ask as many questions as you have and understand the details of the policy. Be sure that you are not the only one who understands the same and let the responsible adults of the family know as well. Include them in the discussions about getting a policy.

We really hope you are convinced about getting an insurance policy if you do not have one. Please ask as many questions as you have to our experts in insurance registered on VConnect. Each company has been verified and has relevant expertise in the sector.


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