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Chuks Udo Okonta
In spite the fact that everybody needs insurance, the poor requires it more than the rich
Insurance is a mechanism that helps restore people to the state they were before suffering a lost.
This shows that an individual who suffers a lost and lacks the means to return to the state before the lost, may continue to suffer more lost.
One of the uniqueness of insurance, is that its products are designed with full consideration on the poor.
Imagine buying a N100,000 annual life cover for just N1,000.
An accident life cover worths N2.4 million cost just N8,000.
N3 million third party motor insurance cost N15,000.
Health insurance cover for a year cost N15,000.
Lack of insurance causes great harm on the poor. It stems the poor from gaining a space among the rich.
Consequences on the poor
*Total lost
A poor person without insurance, would suffer a total lost of assets when mishaps happen.
The rich has the money to replace lost assets and can also be supported by his/her rich colleagues, but the poor who is at the same level with his/her friends can never get the needed support to rebound.
*Pool benefits
The poor who is without insurance can never benefit from the rich who are housed together in an insurance pool.
Insurance remains one of the best means for the poor to benefit from the rich, who spend more money to secure their lives and properties.
*Poverty circle
Insurance is one of the best ways for the poor to break out of poverty.
With insurance the poor can accumulate money to start a business, buy a land, train his/her children, enjoy good medical care, have comfortable life in retirement amongst others. But the poor who never embraced insurance would continue to live in poverty and transfer poverty as inheritance to the children.
*Debt
The poor without insurance, who suffer a lost may go into borrowing to restore lost assets. The inability to pay back may compound his/her challenge, forcing him or her into deep debt.
With the enormous benefits from insurance, the poor should be positioned to take advantage of improving his/her stake with insurance.
The poor needs insurance more than the rich, therefore they should leverage it to associate with the rich.
