Is Getting Insurance a Waste of Money? (Hard Knocks and Bitter Truth On Need for Insurance Protection)

Is Getting Insurance  a Waste of Money

The rich will continue to get richer because he takes proactive steps to secure his future by buying insurance against the vagaries of potential losses, which could diminish his current level of wealth. The poor, on the other hand, will continue to get poorer in his self-deceit of self-insurance whereas he is not liquid enough to set aside a dedicated fund to pay for eventual losses, which are bound to occur now or in the future. The poor lives from hand to mouth and will be devastatingly vulnerable to the crushing destruction of common risk exposures. It is in line with the above that we should consider the following questions, which are very pertinent to this discourse:

• If you as the breadwinner of your immediate family die suddenly, is there enough fund or savings to guarantee the complete education of your children and self-sustenance of your family? Will your children and wife become liability to extended family members who may not have excess resources to tackle their own immediate problems? Your solution is an Education Policy which will ensure your children are in school till University Level.

• If your house and/or its contents are ravaged by flood or fire today, do you have enough fund in your savings to undertake the reinstatement of the loss immediately which could include your immediate relocation to alternative apartment while the loss is been reinstated. Your solution is Property Insurance coverage that includes fire and flood damage.
• If you lose your car bought with hard-earned money in a total loss accident or to armed robbers, do you have fund to replace it without recourse to borrowing or relying on good Samaritans to raise donations for you? In order prevent this situation from occurring your best solution is the mandatory motor insurance cover.

In a narrow thought exhibiting lack of vision, the answer to the above basic questions by an average person will be: God forbid it, it will never be my portion. For the benefit of the ignorant poor, all the business assets and operations of the richest man in Africa, Alhaji Aliko Dangote, are fully insured. You can find out this fact for yourself.

The essence of getting insurance protection is for the proper management of risks and catastrophic events. Therefore, it is safe to say that getting insurance is not a waste of money and a means to ensure peace of mind and the securing life and property. 
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