Most people buy insurance because they feel the insurance agent is nagging and therefore ask for the minimum premium so that they dismiss the agent. It is important that you evaluate your insurance need based on your financial responsibilities i.e your expenses and other financial commitments.
This means that you have a particular lifestyle and your family has already adjusted to that lifestyle based on your income. The purpose of insurance is to replace income, it cannot replace life, it cannot replace emotions but it ensures that you are able to meet your financial obligations in case of disability or loss of a loved one. The amount of insurance you buy should ensure that you maintain that lifestyle even after the unfortunate event of disability or loss of life of the bread winner.
Can you imagine if your children will have to move from the school you have taken them today because daddy or mummy is no more? or your spouse will have to go back to the village or move to a smaller house because life cannot continue? that will be double tragedy. if you are a young man or lady and you become a beggar in the event of disability? remember in the event of total and permanent disability, you loose your capacity to earn income but your expenses are higher because you are still alive and require more specialized attention. Therefore the amount of insurance you buy should be equivalent to the amount you need for life to continue in case of disability or loss of the bread winner.
The Bible says that my people perish because of lack of knowledge. lets desist from buying insurance for the sake of it, take a step and consider your insurance needs and act immediately because procrastination is a killer disease.
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