The concept of insurance is something that many still think of as unimportant. Many have asked if there are benefits that come with life insurance, it is safe to ask about it, but having insurance is better than having people raise a GoFundMe account for you. Insurance is important because anything can happen at any moment, with life insurance; it looks like writing a will for your family even after you’re gone. In a world where Covid-19 is presently ravaging, you need to see insurance as a better option because things are hard right now. Unlike the Western world, where insurance is a priority, Africans (and even Black Americans) still do not have an insight of what insurance is because there is a pressure of leaving a legacy behind.
In this blog post, from the perspective of the Goodman Factory Podcast, we will be analysing insurance for better understanding, and also, we will discuss the benefits that come with life insurance.
Benefits of Insurance
Insurance is the way out of old age poverty and unnecessary spending; its benefit are as follows:
It is a sound financial plan
One of the problems many people face is their inability to survive after the main family provider has passed without leaving anything behind which they can depend on. Using an insurance policy has several benefits for every family; however, the greatest advantage is that families with an insurance policy won’t have to pay certain debts when the major family provider dies. Life insurance is a means to plan for long-term financial protection, which leaves you with the peace of mind that your family has something to fall back on.
As a primary provider for your family, if someone would then suffer financially if you died, you should always have it in mind to safeguard their future by insuring your funds. It can be likened to opening a savings account that comes with benefits. Peradventure, you die untimely, it can help cover funeral costs, help the ones you left behind to provide for their daily needs and secure their futures without you.
It’s not as expensive as you believe
The reason many haven't invested in life insurance till now is because they have the belief that it is very expensive, thus, they can’t afford to sort it. This has been a barrier hindering many people from reaping the benefits of a secure life insurance policy. In reality, life insurance is not expensive, it is very affordable and does not cause any inconvenience to your income. This is the reason why there is variety in plan types; if you feel your income can cover any policy, you should go for it. A healthy 30 year old that decides to invest in a 20 year term life insurance policy with £50,000 coverage, by paying £15 a month, will realise the gain in years to come. When you critically access this, you will realise that it is an easy task as long as you’re consistent.
It can accumulate cash over time
Unlike the bank where you save and get little interest maybe after a year, an insurance policy builds cash value as time goes by, and also provides a death benefit to those you provide for as beneficiaries even after you’re gone. Insurance policy investments are tax-free and you can decide to use it whenever you deem fit, because, the more you save, the more the value increases. Do you have a plan to buy a house, go on vacation, or embark on a project at a particular period of your life? You can use an insurance policy as a solution.
Insurance coverage helps to prevent you from borrowing a loan that results in huge profits for the bank. However, should you decide to take a loan during your lifetime which you’re unable to pay, your beneficiaries can settle the debt and still have something to hold on to even after payment.
Life insurance is more than just insuring life
It goes beyond buying an insurance policy to protect you from unprecedented events. Insurance policies help you to plan for your family; it helps you to be prudent with funds to avoid spending lavishly on things that do not matter. For instance, you can have a policy called a hybrid policy that covers a long-term payment for health benefits. You may not need it immediately, but along the line, if an emergency occurs, you can take advantage of it. If you do not use it, your beneficiaries get the benefits when you die.
It helps to maximise your retirement
If you’re always worried about how life would be for you after retirement, do not hesitate to insure your funds through an insurance policy. It helps you to take care of loans, and also provides cover for long-term care benefits which would be of use to you in your old age.
Some elderly people tend to commit suicide if life becomes unbearable for them, with no money to take care of their needs. The issue is that they didn’t think of insurance when they were still making a large amount of money. You need to understand that money is liquid, it comes and it goes. It is your choice to preserve it. After retirement, you get to enjoy your savings and when you’re gone; your beneficiaries get the benefits.
For more information about the need for insurance and benefits that comes with it, you can learn more on and do not forget to subscribe to the Goodman Podcast and listen to ‘Insurance’