SECURE YOUR FUTURE STARTING TODAY: 5 WAYS INSURANCE POLICIES WILL HELP YOU by IA Rhinake Aliyu

Aliko Dangote has been the richest man in Africa and the richest black man in the world for 9 years now as reported by Forbes.

With a networth of $12.5, if Mr Dangote would live for 300 more years, he could afford to spend nothing less than 3 million naira per day before his income runs out.

Let me ask you a very important question;

If you are to quit/loose your job today, how long can your savings last  given your current lifestyle before you get broke?

What kind of lifestyle will your family be able to afford if you loose your job or face an unfortunate unforeseeable circumstance or the ultimate departure from earth?

You may not be as rich as Dangote but with adequate planning with a good insurance policy in place you can live in comfort after you retire, or at least have something to cushion the effects for you and your family in the case of sudden unfortunate circumstances like loosing your job, a fatal accident or even severe cases like death.

Having an insurance policy can:

1. Help You Save: There are certain insurance policies which have savings or investment features. 

One type of money you need to put in place on your journey to financial freedom is a savings plan. For savings to be meaningful, you need to have a future purpose to which you are saving.

You may want to save for:

... Starting a business in the future,

... Retirement, or

... Go abroad to study among other reasons.

Having a goal for your savings and a targetted amount to raise sets in motion the determination to achieve the goal.

 Now you might be saying ..."why should I take an insurance policy when I can save in the banks?" This takes us to the next point.

2. Protection from the Temptation to Spend Your Savings on Things other than the Purpose for which You Intended for It.

This will help you if you are thinking ... "I cannot just close my eyes to the numerous needs around me when I have some money sitting in the bank".

Except you are among the very few people who have developed the discipline to save money without diverting it to meet other needs even though you have access to it.

Saving in the bank is important for immediate use and even though you can save long term, the interest rate (if any at all) are abysmal.

With an Insurance Policy, you have the added advantage of a higher interest rate and bonuses. Other benefits include:

3. Life cover: with a life cover, your beneficiaries get paid the entire amount you hoped to save for the duration of time of the Policy you have taken in the event where you quit earth without notice.

For instance:

Mr Adamu Eze a civil servant takes a Policy of 5 years that has a life cover feature such as the Child Endowment Policy in order to provide for the best Secondary school education of his 2 children currently in Nursery school.

To raise the sum of N8.4million in 7years, he pays a monthly premium of N100,000. After 4years of taking the Policy, Mr Eze encounters a sudden tragic accident.

Having taken a policy with a life cover, Mr Eze's wife Funke being the beneficiary stated in the Policy documents will still get paid the entire intended sum assured of N8.4million even though Mr Eze saved so far only the sum of N4.8million.

You may be wondering the insurance company would pay N8.4million instead of N4.8million to the beneficiary. This is because one of the major functions of insurance is risk bearing.

4. Adequately Preparation for Retirement:

With Policies such as the Personal Provident Plan and Annuity for life, you can prepare for a comfortable retirement.

The Personal Provident Plan is suitable for self-employed people who realise the need to prepare for their old age. It also is beneficial for the working class people who would want to augment their pension on retirement and to cater for themselves for the 1-2 years immediately after retirement before they receive their gratuity.

5. Tax Advantage:

If for instance the tax deducted from your salary in a year amounts to N300,000 while you have this policy running to the tune of N1million for the year, you qualify for a tax refund of N100,000 (10% of your insurance savings for the year).

Success in life doesn't just happen. It takes having a dream and taking deliberate steps to make it happen.

To start being intentional about the future, let us help you.

GO HERE to have us talk with you.