Mitigating risks: Insurance critical in post-pandemic era

Covid-19 heralded unprecedented disruption that permanently redefined our post-2019 concepts of business normalcy. PHOTO | SHUTTERSTOCK

Owning a cover helps you reduce financial uncertainty and makes accidental loss manageable.

Insurance does this by substituting paying a small, known fee “insurance premium” to a professional insurer in exchange for the assumption of the risk of a large loss, and a promise to pay in the event of such a loss, protecting people, communities and businesses from unexpected risk, while embracing rising concerns around sustainability and fairness.

As we move through life, find a partner, raise a family and maybe start a business, the importance of insurance in the long-term plan increases.

Unforeseen tragedies such as injury, illness, permanent disability or even death can leave a family facing tremendous emotional stress and nothing to fall back on.

Therefore, insurance is a crucial instrument in financial planning.

However, with the ensuing pandemic, the importance of insurance is even more pronounced.

One of the products you can duly capitalise on the market today is the life insurance cover that safeguards you and your family against financial instability so that they can carry on their lives with dignity and comfort.

Several product options are available that offer compensation to employees for death from any cause.

These covers can be purchased by individuals or groups such as chamas or even SMEs and light industries. Providing good insurance coverage for your employees is a vital practice, especially after the numerous concerns that came about due to the Covid-19 pandemic.

The policy has innovative life insurance solutions ideal for corporates, parastatals, State agencies, SMEs, SACCOs, education institutions and religious bodies. It is always wiser to plan for rainy days to reduce or manage the impact of loss should any occur.

The pandemic era showcased several economic crisis circumstances.

Truth is, most of these are generated from inadequate financial planning. Let’s take, for instance, during this period, a lot of people resorted to fundraising or borrowing money from relatives and friends who were unfortunately not completely of help (in most scenarios).

In dire situations, we see families disposing of assets at throw-away prices to raise funds to offset emergency medical bills and other urgent needs.

Simply put, an insurance cover bridges that gap because losses and misfortunes happen from time to time, and in most cases when incidents such as sickness, motor accidents, fires and even death occur, we are not usually prepared for most of these financial burdens.

These unprecedented times have emphasised that uncertainty is real and can strike badly highlighting the fundamental need for financial planning.

Despite the rise of many individuals being financially strained in the current times with pay cuts, business and job losses, fewer savings, or excessive liabilities; ensuring financial security for your family should be the top-most priority for any of earnings.

A good idea always starts with the term ‘plan’ and one way to hack this is by ensuring assurance from unexpected events by securing an insurance cover.

Perhaps the most significant benefits of insurance include the protection of your family and assets and the resultant peace of mind that one has after they acquire insurance coverage.

Let us take, for instance, does the thought of being robbed or walking into a physically damaged house contribute to your worries? 

A home is one of the most prominent assets, likely to be your largest financial and emotional investment. The hard truth is your property is always at risk of being damaged due to natural disasters, burglary, vandalism, fire and similar but Laser Insurance Brokers helps you beat that risk by wholly protecting your treasured possessions.

In this season, thoughts on refraining from insurance will only pave the way for mental turmoil regarding whether or not to take the risk of not having insurance.

Lastly, identifying a suitable insurance policy for yourself or your organization is equally essential.

In most cases, the selection of an insurance cover is based on one’s current and projected financial status i.e., current, or futuristic ability to pay the expected insurance premiums, your age, your medical state, future financial plans, etc.

Consequently, it is always advisable not to overlook running a cost-benefit analysis of your intentions before financial commitments.

This is because the cost of the insurance coverage depends upon many reasons like the desired level of coverage or its additional non-charged benefits or what is commonly referred to in insurance circles as riders.

Thus, the cost of buying insurance ought to be justifiable by the benefits covered under the policy. The best time was yesterday, the next best time is now. Stay protected today for your peace of mind tomorrow.

The writer is the Executive Director of Laser Insurance Brokers.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.