Insurance

Why you can’t buy insurance when you need it

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Chuks Udo Okonta

Unlike many products that you can buy when you need them, insurance products can’t be bought when you need them, for they are meant to be purchased before what they are required for happens.

To drive this home, the National Insurance Commission (NAICOM) some years ago initiated a policy tagged: ‘No Premium No Cover’. With the policy in place, you can’t benefit from insurance if the premium was not paid before a risk occurs.

Though insurance mechanism helps in mitigating risks, it is not a charity concept. The mechanism thrives on a fund pooling system, which entails the collection of funds from people to solve the problem of those that have problems.

Knowing that you can’t buy insurance when you need it, you should ensure you buy insurance against accident, fire, retirement, death, flood and other perils.

To ensure you benefit from insurance also buy genuine policies from insurers, registered brokers and agents.

Note that insurance premiums are relatively cheap. Imagine, an accident cover sold for N3,000. This cover provides protection to the tune of half a million naira and runs for a year

School Fees Protection Plan that provides cover for students and their guardians cost N10,000 with benefits running into N2.5 million

Treatment of terminal sickness like cancer, requires premium of N10,000 per annum.

Don’t allow risks turn you to a beggar, buy an insurance policy now to secure your next second.

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