As long as the income earner is
still alive working and earning income, as long as he is
consistently following his investment plan, it will get to a time
when his financial goals would have been completely accomplished.
This is called financial independence. However, no one books
appointment with fate. No matter how beautiful a plan may look, it
is execution that adds life to it. The untimely death of a
breadwinner can cause frustration of the family financial plan. The
dead man is not affected any longer but the dependants could be
thrown into a state of financial devastation due to loss of income
occasioned by the premature death of the income earner. The essence
of this policy is therefore to protect the dependants from total
financial improvidence should the breadwinner die, when the family
investment plan had not yet grown. We recommend the inexpensive type
of life policies known as term life insurance. If an income earner
is on an income of N
600,000 per annum
for example and has twenty years more to work, he has on the average
a potential income of N
12,000, 000 to earn
before retirement. Assuming he had also planned that by investing
part of his income consistently, he would become financially
independent before or at retirement. By then he would be able to
execute most of his financial goals. If the unexpected happens today
and the income earner loses his life, his dependants would not only
miss his physical presence but the income he would have earned if he
were still alive. The immediate result of this is that if his
investment account had not yet grown, the dependants will suffer
financial improvidence that could affect them for a long time. It
becomes necessary therefore for this income earner to take a policy
that would serve as a temporary arrangement to make available to his
dependants, a proportion of his outstanding potential income should
he die within the stipulated time. Take for instance, he takes a
policy cover of N
2m, it means if he
dies between now and a specific number of years say 20years, the
insurer is expected to pay this N
2m sum assured to his
dependants. If it were possible, he would have insured himself for
the whole of the N 12m, but at his present income level, he may find
it difficult to pay the premium for the N
12m, so he decides to
take only N 2m
cover to reduce the premium payable. The amount of premium payable
depends on his present age at the date of commencement as well as
the sum assured. If he survives the period, he would not be
entitled to the N
2m sum assured nor
the premium paid, but he would have been able to generate his
desired net asset value through his capital market investment.
Failure to do this does not affect his investment but certainly
would affect his dependants adversely if he dies before he is able
to build adequate investment fund. This is called financial
protection. Term life policy is an ideal complement to our long-term
capital market products especially the individual retirement
account. Because you would be paying only for the death protection
in the policy, the premiums are usually very low unlike the
whole-life classes of life policies where death protection is
bundled together with forced savings and additional benefits. At
death, your survivors are entitled to both the net asset value of
your investment account with us as well as the sum assured if the
death occurs within the stipulated time. Do not leave your financial
future and that of your loved ones to chance. Make a complete
financial plan that would benefit you and your dependants whether
you are alive or not.
They are counting on you. You
cannot afford to disappoint them.
For further
information, please contact:
Alex Ojugbeli
08023168472,
Onah Alex
08023168473 or 2704197, 2704584, 8958098
