There are multiple reasons as to why the insurance penetration in the country is still below 3 percent. Lack of public awareness has been cited as the main reason as to why Kenyans have so far failed to take up insurance covers. A huge population has no vital insurance protection such as life insurance or even income protection as some still cling on cultural beliefs that uptake of such is signs of bad luck.
Some of the life insurance policies, apart from covering the lives of the insured help the policyholders save regularly over a specific period of time enabling the insured to get a lump sum amount on the policy maturity. Such amounts can end up helping one meet various financial needs such as children’s education.
Loss of jobs, illnesses or death can happen to anyone and its high time we thought of ways of ensuring more people take up insurance covers.
Protecting one’s income is always a key factor especially for the self-employed whose income is directly affected by the number of days/hours they spend at work. This ensures that they maintain their income when occurrences such as sicknesses arise.
Kenindia Assurance, Chief Operations Officer, Mr. James Macharia affirms that many Kenyans are thrown into financial oblivion once they lose their jobs without having a sustained plan of how to pay their rent or even school fees, yet there are covers to protects the earnings that pay for everything an individual buys in life.
Life insurance policies offer threefold benefits. They go a long way protecting and insuring the policyholder’s loved ones financially, the lower returns notwithstanding, they offer great avenues for goal-based savings as well as fulfilling one’s long-term investment objectives.
Critical illness scare
It is commonly said that most people are just an illness away from poverty. This is a reality that befalls most Kenyans who only depend on their income for everything including paying for medical bills. In the event of an illness that leaves you bedridden, insurance covers come handy as the insured can be paid a replacement income until the insured is fit enough to continue with the work.
The premiums are always paid according to the terms of the agreement and can either be monthly premiums, a one-off lump sum or in most cases both. In the end, one is able to realize much benefits, therefore, relieving the financial burden from family members as is always the case in most cases. This allows the insured to concentrate on getting well again.
Life insurance policies should only be bought when the policyholder is certain of a steady income flow which can help the one pay their premiums regularly. Most of the policies are always long-term in nature and for a better overall benefit, a longer policy period is always advised.
According to Mr. Macharia, claims in regards to income protection can at times be complicated to asses as they in most cases depend on subjective judgments about claimant’s fitness to resume their work. However, he urges the public to secure their future and those of their families by considering taking up insurance covers.