11/01/2017
IS INSURANCE FOR THE RICH?
Often times I have come across people who have told me categorically that insurance is not meant for them. The reason they advance is that it is too expensive and only affordable to the elite who have enough discretionary income. This perception is validated to a large extent by the way insurance has been sold over the years and continues to be sold today. But I would like to share some of the facts that contrast this view and hopefully will help in increasing the demand for insurance.
Like I have shared before, insurance should not be seen as a foreign concept that originated from somewhere unknown. It was away of life for our ancestors and should be a way of life for the modern generation. Let me explain my point. In most Zambian societies, people have always had a way of assisting each other whenever they are faced with misfortunes. In various ways, those who suffer misfortunes are given material contributions to ease their suffering. The common misfortunes that we all relate to are funerals. Up to today, it is in our spirit to make contributions to the grieved friends as a way of showing our sympathy as well as support for them. When you look at this, you will note that you are actually performing an insurance act even though you are not aware of it whether rich or poor. You are engaging in what I would politely call "disorganized insurance practice". It is a way of life as I said and it happens spontaneously with little or no planning involved.
Now, modern insurance hinges on looking ahead and having a plan to handle misfortunes before they happen which misfortunes can be in form of loss of property, income or death. We all know for example that death will occur. But do we know when? What should we do when it occurs and what impact will the death of the beloved one have on the children, the wife and dependants? It is these questions that insurance answers. Lets not forget, no one knows how long they will be dead. Insurance will not stop death from occurring. Rather, it will provide a solution to the negative effects it comes with, on those who remain. takes away the income from the family.
Therefore, one of the ways to forestall this loss is through an organised transfer of responsibility to someone who has the capacity to continue providing when the undesirable happens. Insurance is one of one of the most effective options. The fact that misfortunes do not choose who to affect based on economic status qualifies insurance to be a choice for everyone, rich or poor.
