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Chuks Udo Okonta
The desire to save money is one of the things that has endeared most people to the banks and this is also one of the reasons the banking sector is richer and bigger than the insurance industry.
Looking deeply into the services rendered by the insurance sector, it can also be said that the insurance business is also into the service of helping the public to save, just that it is not fully communicated and understood by the people.
To effectively position insurance business, efforts should be made to de-emphasize the consideration of insurance as a risk tool.
The projection of insurance as a risk tool, often debar people from embracing insurance culture.
As a promoter of insurance policy donations, I have observed that telling people that they would be indemnified when they suffer risks such as accident and their families indemnified when they died, is often hard to say, but telling them that the policy would help them save money that would have be spent if they are not insured, makes them feel at home with the policy.
How insurance helps in savings
*Savings through motor insurance
With a N15,000 premium paid for third-party motor insurance, a motorist can save up to N3 million that would have been expended on compensating for damages caused to other people.
Moreso, with five per cent of the total cost of a vehicle paid as premium, a motorist can recover a vehicle lost to fire, theft, accident and more. This enables the motorist to save 95 per cent of the worth of the vehicle that he/she would have spent for the replacement if the vehicle was not insured.
*Savings on health insurance
The cost on healthcare in recent time has continued to soared. But with N15,000 premium paid for a year, an insured can access good healthcare for a year, thereby saving huge sums of money that he/she would have spent from the savings.
*Savings on accident insurance
With just N8,000 premium paid to secure personal accident cover, an insured and his/her family can enjoy up to N2.4 million coverage. The coverage would enable the insured save funds that would be insured on treatments arising from an accident and also personal liabilities, that is damage cause on people.
*Savings on retirement
Insurance offers one of the best means to save towards retirement. This can be through deferred annuity or endowment.
*Savings for projects
The compounding interest and free life cover on savings products offered by most insurance firms, speak to why insurance remains a good savings platform.
*Savings for education
Insurance offers parents a unique platform to save for their children and wards education. The savings help parents to conveniently provide qualitative education for the children.
Insurance from inception was designed to enable people save what would have been expended when risk occurs. Therefore, the message should be more on savings rather than risk mitigation.
People would embrace insurance more when it is presented as a savings platform, rather than risk mitigating channel.
