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Chuks Udo Okonta
Just like the classification of electricity in Bands and Band A costing high and providing premium value, in insurance, you choose the Band to place your life.
Top Valued lives are placed on Band A policy, which requires high premium payment – N1 million premium for N100 million life cover.
*Valued lives – N100,000 premium for N10 million life insurance cover.
*Middle lives – N10,000 premium for N1 million life insurance cover.
*Low life – N1000 premium for N100,000 life insurance cover.
Worthless life – no premium, no life insurance cover.
One unique thing about insurance is that it is used to evaluate the worth and value of lives and properties.
Important lives and properties are adequately protected against mishaps and insurance remains one of the best instruments for such protection.
In this article lives are categorized in Bands.
*Band A: Top Valued life
High premium, huge life insurance cover. Above N1 million premium, providing above N100 million cover.
*Band B: Valued life
Medium premium, fair life insurance cover. Above N100,000 premium, yielding over N10 million cover.
Band C: Middle life
Average premium, average life insurance cover. Above N10,000 premium, providing above N1 million cover.
Band D: Low life
Small premium, small life insurance cover. Above N1,000 premium and getting above N100,000 cover.
Band E: Worthless life
No premium, no life insurance cover.
As you now know the Band you belong, you can re-classify your position and price your life accordingly by placing your life in a good Band depending on your income.
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