Unpacking life insurance!

Life insurance is one of the most important aspects of personal finance and family security and yet it’s a topic that is surrounded by a lot of confusion and skepticism in Nigeria. What is it? Why do I need it? Is it expensive? Which policy is right for me?
To begin what's life insurance;Life insurance is a protection against financial loss that would result from the premature demise of an insured person. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the demise of the insured. The amount paid by a life insurer depends on the the level of cover in the agreement.

Why is life insurance important?  

If you are retired or you have no financial dependents, the reality is that you do not need life insurance. In Nigeria, however, most people have a number of dependents. Even if your children are old enough, most of us have other people we care for: spouses, parents, extended family members etc. In the case of an accident or demise, life insurance helps to compensate those left behind for what are often considerable financial consequences: final expenses, outstanding debts, school fees and lost income.

How does the Bonus Life savings solve a problem for the Nigerian consumer?

Being sufficiently covered would provide real peace of mind for a huge number of Nigerians. As mentioned above, we know that there are a number of barriers preventing many from taking out policies. That’s why we have Bonus Life.

Bonus Life allows Nigerians to benefit from life insurance without having to pay a N20,000 premium. It is essentially a savings plan like the one you have with your regular bank. You enjoy all the returns of a regular savings plan but the key differences are two-fold: a) you earn superior interest (more than 5%) and b) simply for saving regularly, you get Bonus life insurance cover in case of an accident.