Life insurance is easily misunderstood yet; it is such an important part of personal finance. Not a few would rather avoid talking about having a life insurance especially since it brings up the topic of their own death. However, if you have the right information, it is something that your household would benefit from.

In this article, we would go over the top 8 things you should know about life insurance

  1. If people depend on you, you need life insurance

From spouses to dependent children, people who depend on you financially should not have to suffer financially if you were suddenly to be no more. The death of a loved one can cause a lot of expenses to be incurred. These expenses were unforeseen and money may not have been left out to take care of them. Also, after spending so much on the death of a loved one, they need to carry on with their lives, and they can hardly do this if nothing has been specially left for them. However, if you are much older and you do not have a spouse, children or siblings who depend on you, then you would not need life insurance.

  1. Life insurance is not just about the money

A lot of people assume that life insurance is simply about the monetary value attached to a person’s life. It is much more than that. It is compensation for a person’s inevitable demise. Many times, life insurance has helped people lessen the burden and financial costs that may have been left behind by the person who died. Also, as we know that death is no respecter of persons, life insurance also helps you put your mind to rest because then, you know that you have made plans in case of unforeseen circumstances.

  1. Life insurance is not an investment

As with any other type of insurance, life insurance is not an investment. Rather, it is a risk management tool. It is important to note this because a number of people make wrong decisions off the notion that life insurance is an investment. Life insurance can be very expensive and is hardly for you if you do not have a steady paycheck and/or live from hand to mouth. Life insurance should be taken when you have enough to provide for you and your family, save away and still have excess. On no account should life insurance replace your savings.

  1. Life insurance comes in two main types

There are two main types of life insurance: Term and permanent. The Term Life insurance is usually the least expensive and mostly patronized. Here, the insurance company bases the insurance on the probability that you, the insured, will die within a stated time/term. This term is usually 10, 20 or 30 years. Also, this means that you may pay your premiums for this stated term, and get nothing out of it eventually because you did not die, which we suppose is a good thing, except if you think otherwise. The permanent life insurance allows the life insurance policy to exist permanently or for a person’s whole life.

  1. The life insurance is a policy

A policy is a contract between a life insurance company (insurer) and someone who is financially interested in the livelihood of another called the policy holder. So, the insurance pools the premium of policy holders and this is what is used to pay out claims. So involved in this contract is usually the insurer, the insured, the owner and the beneficiary. The insurer is the insurance company contracted in making the life insurance and paying out claims in case of death. The insured is the person upon whom the life insurance policy is based. The beneficiary is the person who is to receive the claim upon death of the individual insured. The owner is the person responsible for paying out the premiums. Usually, the insured and the owner are the same person.

  1. Premiums paid on life insurance

Premiums paid on life insurance is dependent on the risk of the insured dying. We mentioned above that life insurance can be pretty expensive. However, it can also be inexpensive. For example, a healthy person without any risky behaviours may pay a low amount of money and receive benefits in millions of naira. A person with so many risky behaviours like smoking will pay double the premium to receive the same benefit. A person with known health problems will pay even triple.

  1. Cancelling an existing life insurance policy

When cancelling a life insurance policy, it is important that you do not leave money or coverage on the table. For instance, if a particular policy isn’t appropriate for you anymore, it would be best to not cancel the policy until you have a new one with a more appropriate coverage. Also, if you do not wish to have a policy anymore, you simply stop paying premiums and inform the insurance company appropriately. Then, you will not have any more coverage. You can also cash in on a permanent life insurance policy if you feel you do not need it again.

  1. How to calculate the best life insurance policy for you

Online tools exist which can help you calculate the ideal policy for you. You can also contract an insurance agent who can help you through the process. Most of the time, premiums given by insurance companies are the same whether application was made online or with an agent. A dedicated insurance company can also help you save money by choosing the best policy for your situation. Also, the insurance company would want to know how much of a risk you are, and may also evaluate your current health, past health and the health of your family. It is important to answer truthfully. This is how they would be able to evaluate how much premium the owner is to pay on the life insurance.

Interested in getting a dedicated insurance comapny? Click here to get in touch with us

Call us today on 01-9054380

webmaster
January 28th, 2020
Posted In: Blog

To many people, buying life insurance is something you do when you are older. But that is a myth and could not be farther from the truth! Regardless of your position in life, nobody knows what the future holds. Everyday, people pass away and the devastating consequences which this leaves on the family is enough strain to add the worry of the survival of those left behind.

The case is made truer if the person who dies is the breadwinner, and has dependents in the form of children, spouse or siblings. Here are reasons why you need a life insurance policy.

  1. Look after those left behind

A life insurance policy helps you to secure the future of those who would be left behind after your demise. Nobody prays to die, but with that occurrence, you do not want to let them down totally. From replacing lost income to payment of the children’s education, taking out a life insurance ensures that everyone gets the much-needed security to pull through the loss.

You do not want your children having to get student loans or dropping out of school entirely because you did not factor in the eventuality of death.

  1. Handling debt left by you

Nobody should have to deal with debt left behind by a family member because of their death. Many times, they are not even prepared to handle such financial burdens. This debt can range from personal loans to credit card loans. A life insurance policy helps them to take care of such debts after you are gone.

  1. Achievement of long term goals achievement

A life insurance policy can help you achieve long term goals in the event of a cash-in. Also, due to the fact that the life insurance can come with multiple investment options, it helps you grow your cash without paying any mind to it. However before engaging in life insurance policies that involve investments, be sure to read through the terms and conditions in order to have a full grasp of the risks and rewards. You do not want to be caught unawares by policy changes. A life insurance also supplements your retirement goals. A life insurance can serve as some sort of pension plan, whereby you enjoy a steady flow of income even after retirement.

  1. Life insurance is cheaper to buy when you are younger

Now, we are not saying that every millennial should get a life insurance. You do not need it if you are still living off your parents. However, if you are a working millennial and you have dependents, you need to buy a life insurance policy. Coverage costs are much lower when you are younger. However, beware because insurance agents may want to cash in on your youth and naiveté to sell you an insurance policy which you do not exactly need.

Due diligence needs to be done, before you accept an insurance plan.

  1. You may not qualify for insurance when you are older:

A person’s “insurability” is important in determining whether or not they qualify for a life insurance package. To determine the premium to be paid on a life insurance, the insurance company conducts a series of health checks on your personal health and your family’s health. At a young age, your “insurability” is at its highest because you are most likely do not have any health challenges. However, as your grow older, the chances that you will qualify for a life insurance reduces because health problems may set in. When you are in good form, you get to pay very little as premium, compared to someone who has risky health behaviours or health challenges.

Life insurance as all insurances are based on uncertainties. You may be well now and feel that taking a life insurance is not necessary. But do you know that once you fall ill, you may not be allowed to take an insurance policy? It is like buying a car insurance, the insurance company would only hand out insurance policies on new cars and not worn out rickety cars!

  1. Business needs:

Though this is not common, many people take life insurance because of their businesses. This also helps if you are the provide most of the funds in the business. For the period after your demise, the business would be able to make use of the proceeds received from your insurance policy to keep running while looking for alternative sources of income

It is also very important that when taking life insurance in business, both partners do so to avoid trust issues which may arise.

Call us today on 01-9054380

webmaster
January 28th, 2020
Posted In: Blog

Vital Questions that you need to ask about Life Insurance Plan

Deciding to purchase a life insurance plan is a vital step to take. However, it is not enough to purchase a life insurance plan. There are several questions that should determine your final decision. No matter how attractive a life insurance policy seems, there are certain questions that you must ask to be sure about your final decision. These questions determine the selection of the right life insurance company and plan that is right for you or not.

Here are vital questions that you should ask your insurance company as you consider the prospects of taking up an insurance plan:

What is the monthly and annual premium for the insurance plan?

Before you buy an insurance plan, find out the monthly and premium plan you will pay throughout the course of the plan. Premiums vary depending on the company, its plans, and its benefits. At FBNInsurance, we realize the importance of asserting a question like this. If you would like to find out more about our plans and benefits, visit our corporate insurance products and retail insurance product pages

Will there be a waiting period for the coverage effects?

You should confirm if you would have to wait before the coverage of the insurance comes into play. Different insurance policies have different coverage plans. For some plans, you may have to wait for a period between the time when you start paying the premium and when the benefits of the plan come into effect. You should confirm this to avoid misunderstandings in the future.

Are there circumstances warranting non-payment of benefits?

In some life insurance plans, there might be benefits exception phases. In such phases, the benefits of such an insurance plan do not accrue to the insured. Instead, they deny the insured such benefits. You should confirm this because you should know if the denied benefits are things that you can handle in advance.

What happens if I miss a monthly premium or I delay in payment?

You may not be financially capable at all times. So, it is vital that you know how a late payment or non-payment will impact the benefits received. Also, know if your plan would remain in force if there is a default in payment.

Does the life insurance policy have a cash value if I decide to cancel the plan?

As earlier mentioned, insurance plans vary. Thus, while some plans pay you cash when you opt-out of your plans before you enjoy the benefits, some do not. You should understand the position of an insurance policy on cash value before you purchase it.

What circumstances guarantee the cancellation of an insurance policy?

Each insurance plan has a list of actions that could lead to its cancellation. Before you purchase an insurance plan, you should be aware of the circumstances that would warrant such circumstances as to know how to avoid it.

How long has your company been in business?

The relevance of experience to the success of an insurance policy cannot be overemphasized. When choosing a company that you plan on purchasing its life insurance policy, you should know how long such a company has been in existence and the overall performance of such a company. To save yourself the stress of making such inquiries, get in touch with us to get you started on the perfect life insurance plan for you. As an insurance company, we were incorporated in 2010 and our records have been sterling since then.

To know more about FBNInsurance, click here

Can I pay premiums online or make online payments?

The world has become technologically advanced and this has made online payments a thing. If you prefer the online or electronic payment over the physical payment, then you should make inquiries about the company that you want to do business with respect to their payment terms. The knowledge of this will largely determine if you can cope with such a company in the long run.

Are there online reviews about the insurance company?

This is one of the most vital things to check when choosing an insurance company. You should make sure that there are credible online resources about the company, its insurance policy, and agents.

What is the number of your company’s policyholders?

Another question that you should ask is concerning the number of policyholders in the company. The overall size of an insurance company and the policyholders. These two factors affect the pace of payments. So, ask questions that ensure proper findings of this critical information.  As a company which is a subsidiary of one of the leading Holdings company in Nigeria, FBNInsurance is highly recommended because we are reputable for having many policyholders and paying out benefits.

Can the insurance company change its benefit terms after the policy goes into effect?

Change is inevitable. Sometimes, your life insurance policy may experience such. There are scenarios where an insurance company’s benefits terms would change after the effectiveness of the plan. It is your duty to know what these changeable benefits are.

These are some of the most important questions that you should ask before you purchase a life insurance policy. At FBNInsurance, we recognize the importance of these questions. Want to know more about our life insurance plans and policy? 

Click here to get in touch with us.

Or call us today on 01-9054380

webmaster
January 9th, 2020
Posted In: Blog

All You Need To Know About Getting An Education Insurance In Nigeria

When Mr. Adio who earns N250,000.00 per month attended University, the cost of fees was just N10,000 per year. He did not even have to worry about accommodation because it was free, after all, this was a Federal University.

Today, Mr. Adio’s child, Tobi is 10 years old, and the same university he attended costs N55,000 per year now. Accommodation is scarce on campus and students have to get off-campus hostels which cost between N450,000 and N500,000 per year. Not to mention that there is still pending cost of feeding a child in a school which is roughly N30,000 naira per month.

Tobi has also taken an interest in pilots and planes, and he says he wants to be an aeronautical engineer. To study this course in the future, Tobi would have to go to the US or Canada or consider studying at the only school taking this course in Nigeria – a private university. The cost of all these would run into millions, and from the looks of it, University for him is just 8 years away.

Mr. Adio is unaware of these expenses, and also, he is unaware of his child’s interest. He still thinks the cost of schooling would be like his good old days, and even if it has increased, it would not be so much.

A child’s education is usually the most important thing for a parent. You want to ensure that they have access to the best education. However, this rarely comes without a cost. In today’s world, the cost of getting an education, much less, a university education, keeps rising.

How then does one ensure that they are able to meet the educational demands of their children when the time comes? You may even want them attending a private school in Nigeria or a University outside the country. Given the inflation rate and uncertainties that plague life itself, how do you ensure your dreams for your child comes to fruition?

The answer is simple! An Education Insurance plan.

What is education insurance?

Education insurance is basically a plan which caters financially to your child’s education in the eventuality you are unable to provide for them in the future.

Who should buy an education insurance plan?

Any parent, guardian, and even grandparent(s) can buy an education insurance plan for their children/wards. If you value the future of your child, you should consider getting an education insurance plan for them.

 

When should you buy an education insurance plan?

You can buy this anytime. However, it goes without saying that the earlier you buy it, the better. That way, you can pay fewer premiums on the policy.

The FBNInsurance FlexiEdu Plan is an education insurance plan which helps you cater to your children’s education at a said maturity period.

What does the plan entail?

An intending policyholder takes out the plan with a minimum term of 5 years and a maximum term of 20 years. The maximum age in which the policyholder must be at maturity is 65 years and the minimum monthly premium payable is N5,000. Premium payments can be made monthly, quarterly, half-yearly, annually or even at once in one swoop.  The policy also provides a minimum benefit of N300,000.00 in the eventuality of death.

Who is eligible to take out an FBNInsurance FlexiEdu Plan?

You must be at least 18 years and at most, 60 years old to take this policy for your child or ward. The benefit assured is only payable for death resulting from an accident. When death occurs due to natural causes, all premiums paid till the day of the death will be returned. When the policy is first taken, there is a 6 month waiting period, following which for subsequent renewals, there are no more waiting periods.

At maturity, the assured benefit is paid either as a lump sum or in 4 annual installments. In the case of death of the policyholder before the maturity, 10% of the sum assured will be payable annually to the beneficiary till 100% of the sum assured is paid.

Why you need to take out an education insurance policy today:

  1. Life’s uncertainties: Life happens, from death to illnesses. There are a lot of things that can come between your child and the future you have planned out for them. Many times, we think everything would go well, but things do not always go as we have planned. What do you then do in those situations?
  2. You can provide the education they want, and not just what they need: Tomorrow your child may have the intention of studying at choice universities or even select courses that are rare to find in your home country. This is when education insurance becomes a saving grace and acts as a buffer for the costs at the time. You do not want your child limited to certain schools which may not be good enough, simply because there is a lack of funds.
  3. Rising inflation rates: These days, inflation rates keep going on the rise. Sometimes, people say, “oh we will just save our money in the bank instead of taking out an insurance policy.” However, that isn’t even a great idea because the value of your money saved does not remain the same. It is always best to take out a policy.
  4. The rising cost of living: The cost of living keeps increasing. You do not want to get to a point where you are worried about the education of your child at the same time that certain basic needs are becoming even more pressing.

What education insurance is not

  1. Education insurance is not a life insurance plan: Though benefits are still paid out in the case of death, an education insurance should never take the place of a life insurance policy.  Education insurance caters to your ward’s education, while a life insurance caters to your loved ones in the eventuality of your death.
  2. Education insurance should not take the place of your savings: People sometimes make the mistake of thinking that because they have taken an education insurance plan, then there is no need to save anymore. This cannot be farther from the truth.
  3. It doesn’t have to be for only one child: As with any other plan, you can name multiple beneficiaries. Simply state in what percentage they should get the benefits and name them individually.

Your will does not trump your education insurance plan: Many times, people do not keep their policies updated and think they can simply name a different beneficiary in their will. It doesn’t work that way. Your beneficiary should be clearly stated and duly updated in the case that it needs to be.

webmaster
January 9th, 2020
Posted In: Blog

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