WHAT DO I STAND TO GAIN WITH INSURANCE 1

It's funny sometimes when I hear people say 'of what benefit is an insurance benefit to my life or business'. In such situations I do not convince neither do I encourage such individuals to pick up any insurance or life assurance policy but make them see the other side from their own eyes and leave the rest to their imagination.

One of the benefits/gains of insurance is the leverage in which it gives the policy holder against uncertainties that could occur. Life is an unpredictable phenomenon and it's causes and events cannot be phantom. There should be a conscious effort to get some cover as this helps put the policy holder at rest. When a loss occurs at any level it causes some form of discomfort, emotionally, physically and often times financially. It destabilizes your activities be it business or personal life.

It's a leverage.
Insurance is one of the best form of leverage you could pick to help cushion the effects of small and huge losses. Quite a lot of people are from the school of thought that insurance gets your money and walk away leaving you bare. Well! that's not absolutely true. As much as funds is been paid for whatever cover you intend having in form of premium, you also have the right to a claim where a loss is experienced. As long as the claims you are making is genuine.
The present day insurance industry is well positioned to settle any claim that crystallises from a loss or series of loss. The era of insurance companies not settling claim and walking away is long gone. There are various avenues to making a legal complain to the authorities about such discrepancies (we would discuss that in a later post).

How
Quite a lot of people have misunderstood the term insurance being a leverage probably because the representatives of these firms used the industry jagons to pass across the message and not in plain understandable language.

1. Insurance does not give you back a certain amount you requested as claims(it's known as sum Insured/ sum assured). Rather it helps(restore you back) you get back to a certain level of your life before the loss(whatever agreed form) was ever experienced. For instance if you had a comprehensive cover (leverage against theft, fire and 3rd party) for your car to tune of N3million naira (sum insured/value of the car at the point of taking the cover) where a case of fire occurs as a result to auto crash, the insurance company will not pay you the entire N3million naira as your claim benefit. Certain percentage will definitely be deducted from the value at the time of inception. Yet the insured is sure of getting to as much as 80% or more depending on the time of loss from date of cover and other events. To be continued.................