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How Insurance Can Guaranty Your Child’s Future
By Sunday Ojeme
As leaders in the various tiers of government fail to put in place proper and
sustainable social security system for the citizens, parents have been devising
various means to ensure a good and assured future for their wards.
Apparently, three areas of interests have appealed most to them. These are real
estate, banking products and stocks.
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Insurance, which ordinarily should command more respect in this regard, has been
relegated to the background due to the long standing credibility problem,
especially as regards claims payment.
In the developed world, insurance remains an institution that the government of
the day does not toy with; hence enough provision is always made to ensure that
everybody is well covered.
This can be understood from the recent heat between President George Bush of the
United States and the US Senate over the State Children’s Health Insurance
Programme, when the senators requested that more money be budgeted for the
programme.
In the case of Nigeria, the farthest the government has gone with what looks
like insurance is the provision of subsidised health services for children
within certain age bracket.
However, with the industry now recapitalised, experts say the time has come for
parents to lay emphasis on insurance products specifically designed to guaranty
financial security for their children.
Experts say although a number of products have been designed by operators,
recapitalisation has necessitated that they be improved upon to meet the
financial security challenges of the future.
The Managing Director of Trevor Investments, Mr. Chuka Nwabunor, believes that
insurance operators still need to do more for parents to show interests in
whatever product they intend to sell to guaranty the future of their children.
According to him, “I know the importance of insurance especially in places where
it is well operated. Ordinarily, as an investment advisor, I would have
preferred people invest more in insurance than keeping their monies in the
banks.
“The problem is that here in Nigeria, insurance has suffered credibility
problems and when you experience such things while alive I don’t see why you
should put your money into the same system for the future of your children.”
He, however, says with the new capital inflow, parents will have more to benefit
if they explore and purchase discernable products for their wards’ future
financial security.
He says, “The good thing about investing in insurance for the future is that
some of the products command more interest rates than banks. Instead of putting
your money in the bank at a ridiculous interest rate, it is more advisable to
look for one product that can earn more money for your child in future.”
Continued in Page 2
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