Posted in Lifestyle

Insurance 101

Let’s talk Insurance. And this is because it is an African thing to not take it seriously while we think this sales agents are out here to con our money. Well some are but it depends with the company you want to transfer the risk to. Some even have this perspective that it is meant for the rich! Say what now! I have always wanted to fathom the analogy of investing my hard earned money in these companies while assuring me of more returns. Like heck, you got to prove to me with that calculator, those rate papers that whatever am putting in the bank or micro finance institutions is a waste of resources. Hold up to those who will say “I don’t need an insurance cover. I can make that million in less than a year why wait for 5 years?” And all that shenanigan. Hold your horses. Am not about to convert your mind.

So I went to be educated in one of the best leading insurance companies in Kenya. In fact I interacted with some unit managers who filled my mind with sweet words that caressed my money bags. I was sold. And here is the thing with us young generations; we want to invest for now without looking at the bigger picture. What happens if kids come through? What happens to their education? Do you want them to study in these pathetic varsities or join the likes of Harvard? Will you keep hopping house to house in the name of rent? Mortgage or buying a plot? Do you want to call for a fund raising when you can’t afford medical services? Are you disciplined enough to save money without withdrawing it for years? What happens when you die? Alright no one likes death but it is inevitable, we aren’t lasting forever. Have you sorted out your family? Are you a dare devil who can invest in unit trust products? These are the hard questions we ask ourselves from time to time.

Insurance companies have many products that vary to meet the needs and demands of each and every one of us. Yes even you who hustles and think that you can never be a millionaire. Here is the hack; the older you get the more expensive it becomes and the shorter the policy term the higher the premiums. This is simply cause of the rates used to calculate your monthly premiums to get that sum assured you want at the end of the policy. Start early. Any who, the best thing is that some have cash bonuses where you might get tired of waiting for maturity and boom you are surprised with a check at the end of certain years depending on policy terms. Moreover, some policies also require you to pay premiums up to a certain year then you get yourself a premium holiday. How cool is that?

You don’t have to wait till your kid is in high school to start saving for their college money. This last minute moments always get many curled up. It would be absurd that every term you always queueing in bank and SACCO halls for a loan! As soon as that baby is born (or if you crazy enough, still single, don’t know if the heavens will give you a baby of your own) then you can start planning when you want to reap big out of a certain policy. Interestingly, some education policies aren’t meant for education only, they are diversified to meet other needs. Life policies have been the killer machines to greedy relatives. Shhhhh don’t say I said so but if you taking covers that will benefit your family with lump sum amounts after your death (that is the only benefit out of it), DO NOT TELL A SOUL! Only your financial advisor should know and God forbid if they stab your back.

Before taking up a policy consult far and beyond. Some institutions offer beautiful interest rates, amazing policy terms with high benefits that are competitive in the market. In this game, avoid the poor. Those who yap to their voices that insurance people are thieves that they don’t pay blah blah yet in their lifetime they have never taken even a simple insurance cover like NHIF! Spoilers. A beg! Insurance will only be a problem if you don’t have a VALID CLAIM.

Lastly, don’t go for shortcuts. Patience is key here otherwise you will lose greatly. In addition to that, I have noticed a thing with people who have personal cars. Why would you only take third party covers and not comprehensive? You know the devil likes hitting in areas you haven’t secured to make you lose more. We living in countries prone to terrorism, political violence, perils and we here telling people how we have insured our cars! Think big.

Go all the way. Take risks, invest and learn because that is the other reason for living.

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