Insurance penetration in the country is below 3 percent and lack of public awareness has been cited as the main reason Kenyans have failed to take up insurance covers. A huge population have no vital insurance protection such as life insurance or income protection due to cultural beliefs that uptake of these types of insurance will bring you bad luck.
Some life insurance policies, apart from covering the lives of the insured helps 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 like children’s education.
Loss of jobs, illnesses or death can happen to anyone and it is important for more people take up insurance covers.
Protecting ones income is key 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 things like sickness 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 plan of how to pay their rent or even school fees, yet there are covers to protect the earnings that pay for everything an individual buys in life.
Life insurance policies offer threefold benefits. First they go a long way in protecting and insuring the policyholder’s loved ones financially, secondly they lower returns notwithstanding and finally they offer great avenues for goal-based savings as well as fulfilling ones long-term investment objectives.
There is a saying that goes, most people are just one illness away from poverty. This is a reality for many Kenyans that depend solely 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 agreement and can either be monthly premiums, a one-off lump sum or in most cases both. Those insured get the benefits relieving the financial burden from family members as is the case most times.
Life insurance policies should only be bought when the policyholder is certain of a steady income flow which can help pay their premiums regularly. Most of the policies are long-term in nature and offer a better overall benefit.
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.