Insurance: Grow And Protect Wealth

By Oyekola Taiwo Zacharia  email address: consciousofrisks@yahoo.com; phone no: 07063718460

If, like me you are interested in capital accumulation and financial security, this piece on Insurance: Grow And Protect Wealth is obviously for you.

For truly, amongst other options, insurance can help grow wealth. It can do these through life insurance endowment plans that combine financial security with capital accumulation.

Insurance is not only about protecting against bad luck, accidents, or uncertainties of life.

It is about creating stability so that individuals and businesses can stay on course despite unexpected challenges.

Businesses can be impacted by unforeseen risks; therefore, insurance helps mitigate and safeguard against such events. In essence, insurance absorbs risks that would otherwise fall entirely on the individual or business owner.

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WHAT IS CHANGING IN INSURANCE?

1. Tax Rebate Incentive Benefit

Premiums paid on life insurance policies by self-employed individuals or employees are not taxable until the maturity of the plan. This allows policyholders to accumulate more funds and grow their wealth.

2. Wealth Preservation

Insurance serves as a strategic tool for safeguarding accumulated assets from depletion due to taxation. In addition, bonuses attached to insurance plans help increase the value of savings.

3. Wealth Transfer to Beneficiaries

Life insurance provides a cost-effective way to create immediate wealth for heirs. It allows assets to be transferred smoothly to beneficiaries, often bypassing lengthy probate processes.

4. Demise of the Policyholder Payment

Life insurance policies provide for the payment of the sum assured to nominated beneficiaries upon the death of the policyholder.

5. Retirement Income

The total accumulation of capital plus bonuses can be converted into an immediate annuity, providing a steady income for life after retirement.

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POLICYHOLDER RISK MANAGEMENT

1. Death Benefit

In the event of the death of the assured, the sum assured and accumulated bonuses will be paid to the beneficiaries. This can help maintain business continuity or serve as a legacy fund for the family.

2. Waiver of Premium

In the case of early death or permanent disability due to an accident, the remaining

premiums due may be waived.

3. Protection Against Unforeseen Events

Insurance protects policyholders against unexpected events that may occur during the

policy period.

4. Loss of Employment Benefit

Some policies offer waiver-of-premium benefits if the policyholder loses their job due to

redundancy, until they secure another employment.

5. Accidental Indemnity

Certain life insurance policies provide medical compensation to the policyholder in the

event of a critical accident.

OPPORTUNITIES IN INSURANCE

The family of the assured is provided financial security from the date the policy takes effect

until maturity.

• It can be used as a savings plan for future projects.
• It can provide financial backing for business expansion.
• It can help accumulate funds for children’s education.
• It can also be used as leverage to unlock other financial opportunities.

‘Insurance: Grow And Protect Wealth’ is part of the efforts of this column to guide our esteemed readers towards taking informed and safe investment decisions