Insurance offers you a bridge to financial inclusion

Ekerete Ola Gam-Ikon, MNIM, CPP, is a Management Consultant in Insurance and Entrepreneurship. He can be reached on +234-802-585-0344 (WhatsApp only) or eolagamikon@gmail.com

You may be young and thinking of or planning on becoming financially capable of doing certain things, which means getting a job that pays you well or, if you already have a job or involved in business, managing your finances in such a way that you are not unduly harassed. This is the best time to consider all elements of financial inclusion open to you, namely savings (banks, cooperatives, tech solutions), investment (stockbroker, investment house, tech solutions), payments (banks, tech solutions), credit (banks, tech solutions), insurance (insurers, banks, tech solutions) and co-sharing (cooperatives, banks, tech solutions).

A thorough appreciation of the different elements of financial inclusion highlighted above reveal that with your bank account, you are able to obtain (or buy) any and all financial products and services. Typically, the banks, besides maintaining your account with them, offer to refer you to providers of other financial services and products, sometimes related to them by common ownership or affiliation.

Comparatively, while the other elements may seem to simply involve receiving inflows into your bank account or making remittances to others within your circle of relationships, insurance stands out as the singular element of financial inclusion that secures all the other aspects.

Let’s consider this description or explanation for young users of financial services and products:

A. As you begin to save part of your earnings, to get better rather than leave your money in your bank’s savings account, it is wiser to take the alternatives offered by insurers because it provides the benefits your bank gives and more through the Individual Life policy, in the event of an unexpected accident or fatality, and some have benefits you can get upon maturity of the policy while you are still alive.

With the banks, if you experience any unexpected occurrences, you and your dependants would be wishing you had positioned with an insurer of choice.

Besides, the standard insurance policies for your personal properties – furniture, electronic devices and wardrobes, vehicles, having life policies that will pay you tomorrow, would most likely guarantee that wealthier and healthier future.

Now you only need to make the right choice when it comes to the insurance companies to use, and you will certainly need the services of insurance brokers or tech applications that have a track record of fulfilment.

B. When you have to invest, seek opportunities to make both short term and long term returns, not only the former.

You will need to finance your lifestyle as it relates to rent, married life, nurturing and educating children and attending to the needs of parents and in-laws.

While banks may be offering you exciting products to address some of these situations, they actually rely on insurance partners to deliver, which calls for you to be interested in knowing more about the insurance offerings.

Indeed, some Individual Life policies give policyholders the opportunity to take loans at relatively low interest rates and you need to determine when you would require such insurance policies.

While it could be assumed that some Nigerians who are very good in financial planning would naturally consider insurance products, findings reveal that not so many get it because of the tales of disappointments arising from delayed or denied claims.

Indeed, insurance has been the bridge for many Nigerians in the financial journey; however, that bridge was not there for many others who have seen the insurance companies, they continuously remitted premiums to, fail to honour their claim obligations; thus setting them back to financial hibernation or sometimes, poverty.

To avoid such a scenario playing out in the next 15-20 years, young policyholders and intending policyholders are often advised to have tested Insurance Brokers and Advisors to take them through the murky waters of insurance in Nigeria.

Every successful business person or celebrity in the world has been known to have an Insurance Advisor for individual cases and Insurance Brokers for business cases.

If you want to have a successful career or business life, get an Insurance Advisor at the minimum.

The most distinctive advantage of having an Insurance Advisor or Broker is that it comes AT NO COST to you.

Yes, it is unbelievable but true. Your Insurance Advisor or Broker is paid from the premium you pay to the insurance company directly or through the intermediary (Advisor or Broker).

Based on the above recommendations, conducting due diligence on the intermediary you are considering becomes most important and necessary.

Today, through diverse means, including professional services offered by insurance practitioners that are neither insurance companies or advisors/brokers, you can get the information to rely on in making your decision seamlessly via online and mobile platforms. Simply search.

Another important step to put in place, is to request for and receive regular updates from your Insurance Advisor or Broker within an agreed time. You will most likely know before something goes wrong with your insurance company when you are reviewing the reports.

As a financial service, insurance is too important to be left in the hands of a friend or relative, something you would not do with your bank account.

If there are issues with receiving regular updates from your Insurance Advisor or Broker or even the insurance company, make a demand on how you want to be receiving the updates and if they are not in a position to meet your demand, switch!

Your future is too precious to be left in a place that is uncertain and unclear. You deserve a better insurance experience.