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

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.

January 9th, 2020
Posted In: Blog

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