Article

Misconceptions About Life Insurance

Posted on: 8th Jul 2020

As a religious country, talking about the end would most likely seem like a taboo, however, we all know that it is the one thing that is inevitable which is why it is important to have that conversation with yourself and make plans that will help your dependents when you are no longer here.

Because of this fear, a lot of misconceptions have been passed around over life insurance and we have come up with some of the most common ones backed up with information to make you understand better.

1. IT IS EXPENSIVE

Life Insurance

One of the things that are misunderstood about life insurance is how much it costs: the majority of people assume that a life insurance policy will cost them a lot which is not true.

2. THERE ARE TOO MANY PLANS TO CHOOSE FROM

Life Insurance

It’s true that there are many varieties of life insurance. But for most people, the best choice is Term Assurance and it is quite straightforward.

With term life, you determine the amount of coverage, say N10,000,000 — and the timespan for your protection is 20 years. If you pay your monthly premiums and die within the term, your beneficiary gets the money.

Online tools make it much easier to research and purchase a policy than it was years ago. You can get a quick quote with the African Alliance Premium Calculator on our website. Check here.

3. IF YOU ARE YOUNG, YOU DON’T NEED IT

Life Insurance

It is better to buy a policy when you are young and it costs the least. For example, the premium calculator shows a policy that costs N3,000 a month at age 30 will cost about N6,000 a month at age 40. Because you’re more likely to develop health problems as you age, the price goes up.

4. IF YOU ARE SINGLE, YOU DON’T NEED IT

Life Insurance

There are many reasons single people should buy life insurance. For example, you may have children, be planning to marry or have aging parents who are financially dependent on you.

5. YOU SHOULD SAVE RATHER THAN BUY LIFE INSURANCE

Life Insurance

It’s important to save for retirement, but a life insurance policy is an important part of a financial plan. The great part is our Term Assurance is fairly inexpensive while also being a great plan that helps you plan for life, you should be able to pay for a policy while saving as well.

Thinking of how to start? Easy, click here to learn more.

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