5 Facts & Myths About Life Insurance

ARM Life | Inside Life
November 26, 2019

As important as life insurance policies are, a lot of Nigerians still don’t have one. This is mostly due to the lack of education regarding the subject and the perpetuation of myths and misconceptions about the scheme. The aim of this article is to dispel the myths about life insurance and counter them with cold, hard facts.

Let’s get into it.

MYTH 1:

There are life insurance policies to cover people of all ages. Literally, no one is too young for life insurance. Claiming this is you probably being stingy with money that could work for you later. Which is why you should know that when buying a life insurance policy, the younger the policyholder, the lower the premium.

MYTH 2:

Thankfully, life insurance companies understand that not all fingers are equal and made sure it was possible for everyone to cut their coat according to their size (get the policy that’s affordable for them). E.g, low-income earners usually opt for the term life insurance because it has the cheapest monthly premiums.

MYTH 3:

Biko shhh. While it is important for the breadwinner – or the person that makes the majority of a household’s income – to have a life insurance policy, there’s also value in getting policies for other family members, even if their contributions aren’t monetary. For example, if a housewife (whose job it was to take care of the home) passes, it just won’t be emotionally difficult for the family she left behind but also financially difficult because they might need to pay someone to take over those duties. At least until they themselves get the hang of it.

MYTH 4:

That’s superstitious thinking perpetuated by 51 Iweka Road Onitsha Nollywood movies. We’re 19 years into the 21st century and you can’t be thinking like that. If terrible things wanted to happen to you, they wouldn’t wait till you get life insurance. They’d just go ahead and mess you up. The whole point of life insurance is to have a safety net and be prepared for any terrible things that MIGHT happen.

MYTH 5:

Normally, life insurance exists to help those who depend on you after you pass. But, there are situations where the policyholder needs the money way more than their beneficiaries (e.g in case of a critical illness). That’s where the concept of “Living Benefits” comes in. Living Benefits let a policyholder get an earlier payout than usual (while they’re still alive). But for that to happen, it must’ve been included in the policy during initial agreements.

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