Friday, November 2, 2012

THE INSURANCE MYTH

In the eighties, when life was bubbling and activity seems to be at a slow pace, many folks including mine, took the sweet food insurance firms had to offer. Just like any other naïve investor, it was just another package around. Little did they know that it is an investment worth offloading any form of risk.

There were no proper enforced policies to safe guard the funds of clients, and quite a lot of funds came crashing down with a few firms. A kinsman of mine (now late), while growing up, vividly said nothing would make him put his funds in any insurance firm. This notion was passed unto us as kids then. Consciously or unconsciously we kept singing that song, even when we knew nothing about it.

Interestingly is that this same song is been sang by many age brackets of the early 70’s and early 80’s like me, including the 19th century kids.

I began having a change of mind and attitude after reading Robert Kiyosaki’s books on investment. It dawned on me, that we were ill informed and also the approach to insurance taken by our folks back then was from a different mindset and not the personal risk reduction attitude.  

Most of the comment heard from ill informed public about insurance is that, ‘they just collect your money and run away’. Others say’ it’s not just possible to get money after an accident or damage occurs’. These are some of the common comments made, but it is not the way it has been viewed.

Insurance is not a get rich or money vault scheme as perceived by many. Rather it is the collection of pool of funds to invest and kept for uncertainties, which invariable will definitely occur. This based on factual probabilities and possibilities.

Most definitely death will surely occur, accidents can be reduced but not unavoidable, illnesses will always be on the rampage, a bread winner could drop dead at anytime, floods and fire disaster can be curtailed, but often do occur and to mention a few.

Insurance firms have got various products that suite quite a number of situations, not necessarily death and motor as known only by a few.

Understanding that risk is inevitable, but can be reduced is the right step to understanding and appreciating the benefits of insurance cover. Developed nations have a good policy structure that supports the growth and survival of insurance industries.

Back home in Nigeria, mistakes may have been made in the past, yet the present and the future is bright as policies in this sector is seriously been enforced. Not to mention the benefits accrued the individual who has got a life policy. 

If you have been in the school of myth about this sector, like me, then it’s time to take the bull by the horn and have a rethink. The traffic management agencies are doing their best, disaster agencies are up and doing, fire stations may be well equipped; hospitals having the best of equipments, airlines may be the 21st century models, buildings may have passed construction stress tests etc. All these are not a guarantee that disaster will be kept at bay. 

The Insurance sector has got quite a lot of benefits. It’s time we stopped been deceived and plunge into the pool of wholesome economic advantages it has to offer.

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