How poor people benefit from the rich through insurance

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Chuks Udo Okonta

Insurance entails pooling of funds from different contributors into a kitty and drawing from it to attend to those who suffer a risk.

Insurance system remains one of the means that brings the poor and rich together classifying them as policyholders.

The coming together of these contributors, under the management of professionals called insurers, enable the poor to contribute small and draw big funds from contributions made by the rich.

Aside insurance, it is really difficult to see a platform that welcomes the rich and poor without discrimination.

How insurance helps the poor

* Small premium, big coverage

Insurance enables the poor to get big coverage from small premium. Often times, the money used to settle the claims of the poor are contributed by the rich, who have much fund to buy different classes of insurance.

* No discrimination

Insurance provides cover for both the rich and poor without looking at their status. They are grouped together, provided they are able to pay the required premium.

* Claims

The poor and rich get same claims as stated in the policy. Take for example the regular third party motor insurance pays third party liability of N3 million to all policyholders – rich or poor.

* Surplus/profit sharing.

Under takaful insurance, the poor and rich partake in surplus and profit sharing without discrimination, provided they didn’t get claims payment in a financial year.

* Cover

Same cover is granted to the poor and rich based on the premium paid.

It is really hard for the poor to get financial assistance from the rich, but insurance provides the platform for the poor to draw from the wealth of the rich.

Do you want to benefit more from the rich and people you don’t know? Embrace insurance, as it would help you to enjoy wealth of others to solve your problems.

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