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Insurance in Nigeria is not so popular due to certain beliefs held by most Nigerians about insurance. As with most other popular subject matter in the public space, most of these beliefs are wrong and not based on relevant facts. Below are some of these beliefs.
Insurance Is For The RichRaise the question of insurance with an average Nigerian and you’d be sure to hear of how they are not among the rich or how they would have to wait until they have made a certain amount of money before they consider taking out an insurance cover for themselves. Well, as much as some insurance coverages could be costly, the benefits that accrue to having one will in the long run prove to be more than the cost of purchasing one. It is simply a false belief that insurance is for the rich because it is not. Even most rich persons are unwilling to take out an insurance plan for themselves, preferring other forms of risks management. Insurance is for the financially intelligent. This is because it takes a great deal of financial intelligence to understand how and what to do to protect yourself against losses.
Insurance Is ExpensiveAnother belief of so many Nigerians is that insurance is expensive. However, when most persons who refuse to take out insurance coverage for themselves eventually experience the loss, they often regret their decisions not to have taken out insurance coverage. You need to understand, so many factors determine how expensive or affordable insurance is, including the value of the object being insured and the number of risks involved. You can never compare the premium on a G-Wagon with that of a Toyota Camry, 2016 model, neither can you compare the premium on insurance for a duplex in Banana Island, Lagos, with that of a bungalow in Surulere. For each of these objects, the value differs one from the other.
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Insurance Is For The OldAnother wrong belief held by most people is that insurance is for the old. In Nigeria, an average young person may never consider taking out a health or life insurance coverage until the time they believe they would be needing it, we are talking about their late 50’s and 60’s. Health or life insurance is not for the old, it is for the living, including children. In the same vein, car or property insurance is for anyone who owns a car or property respectively.
It Is Better To Invest In Other Things Than InsuranceThis is also another common belief held by many. Well, as much as investing in other things is advisable and encouraged, investing in insurance coverage is extremely important. If you are one who has investments in other things, for instance, hopefully, with the aim of leaving huge assets for your family when you are dead, chances are you would not want to learn after your death that your huge investments have been sold off in order to pay off some of your hospital bills or in order to pay off your funeral expenses. So, in as much as you make other forms of investments, consider taking out insurance coverages such as life and health for yourself and family members. This way, you’d be sure your investments will be channelled in the direction you intended and not for some other things. Featured Image Source: Businessday NG
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