Whether you’re a recent college graduate, a stay-at-home parent, or someone who never got around to it, you’ve probably thought about purchasing an insurance policy in recent years. You may have thought that they’re out of your price range, or you don’t need one since nothing wrong ever happens to you. However, the truth is that insurance does serve an essential purpose in your life, especially since it gives you security when things go wrong. Here are some reasons why you need insurance and what it can do for you.
What do you mean by insurance?
Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurer. In exchange for this protection, the insured person or entity agrees to pay premiums to the insurer.
An insurance company can be either a life insurance company or property and casualty (P&C) insurance company. These companies are sometimes called reinsurers because they help other insurance companies reduce their risks, thus protecting them from insolvency due to large claims.
What are the four significant types of insurance?
There are many types of insurance, but some of the most common are health, life, auto, and homeowners. Each type of insurance has its own purpose. Still, they all share one goal: to protect you financially from an unexpected accident or event. The four major types of risk management are;
- Life Assurance. Life assurance provides for your family if you unexpectedly die. …
- Health Insurance.
- Home Insurance
- Auto Insurance.
The importance of life insurance
Most people know that risk management is essential, but many do not understand why it is so important. Here are five reasons why you need life assurance:
- It can help your family financially if you die unexpectedly.
- It can give you peace of mind, knowing that your family will be taken care of financially if something happens to you.
- It can help pay for final expenses, such as funeral costs and medical bills. 4) If you have a mortgage or car loan, risk management may cover those payments in case you die before they’re paid off. 5) It can provide a safety net in case you become disabled or lose your job.
- Choose an amount of coverage based on your needs and what they might be in the future (such as adding children or taking out a second mortgage).
- Look at how much money would still come into your household each month if you died (your gross income), then subtract any monthly expenses.
Importance of health insurance
Everyone should have health insurance, no matter their age or health. Health covers can help pay for doctor visits, prescription drugs, mental health services, and more. The importance of health covers includes;
- It helps combat lifestyle diseases
- Health Assurance is essential to protect your family in the case of unforeseen circumstances.
- Due to inadequate insurance coverage.
- It helps to mitigate increases in medical costs.
Importance of home insurance
Most people know they need risk management to protect their homes from fires, theft, and other disasters. But did you know that home coverage can also help pay for temporary living expenses if your home is uninhabitable after a covered event?
Here are some other benefits of home coverages you didn’t know;
1. Homeowner’s coverage protects your home from damage or destruction.
2. Home insurance can protect your belongings during the fire, theft, or other disasters.
3. Homeowners’ coverage can help you financially if you cannot live in your home due to damage or destruction.
4. Home coverage can also provide liability coverage if someone is injured on your property.
Finally, home insurance provides living expenses for those displaced for extended periods due to storms or natural disasters.
Auto Coverage and its importance
No one ever expects to get into a car accident, but the truth is, it can happen to anyone at any time. That’s why it’s so important to have auto coverage. Not only will it help cover the cost of damage to your vehicle, but it can also help cover the cost of medical expenses for you or your passengers if someone is injured in an accident.
- You can feel at ease when driving your car.
- Confidence when you are involved in an accident.
- In the case of an accident, you are not solely responsible for your own loss.
- The burden shifts (i.e., instead of worrying about third-party losses, the insurer supports you).
- Security (you won’t get into a fight with a third party).
Top 5 Insurance Companies in Nigeria
Check out our top 5 list of the best risk management companies in the country. From Leadway Assurance to Mutual Benefits Assurance, these companies have a long-standing reputation for providing excellent service and a wide range of coverage options to suit all your needs
- Leadway Assurance: Established in 1970, Leadway is a top player in the Nigerian insurance market. They offer a wide range of risk management products, including car, life, and health coverage. With over 50 years of experience, Leadway is known for its reliable and efficient service.
- AIICO Insurance: This company has been providing insurance services to Nigerians since 1963. With a strong focus on customer satisfaction, AIICO offers a variety of risk management options, including motor, marine, and travel assurance.
- Consolidated Hallmark Insurance: CHI has made a name for itself in the Nigerian insurance market with its innovative products and exceptional service. They offer risk management solutions for individuals and businesses, including fire, engineering and oil and gas insurance.
- Sterling Assurance: This company has been in operation since 1980, offering coverage services to both individuals and businesses. Sterling Assurance is known for its affordable rates and wide range of coverage options, including motor, marine, and aviation insurance.
- Mutual Benefits Assurance: This company has been providing risk management services to Nigerians since 1989. Mutual Benefits offer a variety of risk management options, including life, health and motor coverage. They are known for their excellent customer service and prompt claims settlement.
These five risk management companies are some of the most well-established and respected in Nigeria. They have a proven track record of providing quality coverage products and services to their customers.
No one likes to think about what could go wrong, but the truth is that life is full of surprises. That’s why insurance is so important. It can help you financially if something unexpected, like a car accident or medical emergency, happens.