Ideas on Buying Endowment and Savings Insurance Plans in Nigeria

Insurance in Nigeria has bad reputation over the years. As a result of this, the penetration of this financial institution is low. But in the recent time, the industry has really improved. There are varieties of insurance products and services designed by insurance companies in Nigeria today. This has contributed in making insurance sales in Nigeria to improve. With these plans, people can save money and also have insurance coverage.
What are Endowment Policies in insurance? An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death of the life assured. Typical maturities are five, ten, fifteen or twenty years up to a certain age limit. Endowment policies are major policies designed by insurance companies in the recent time. As a financial advisor, I will advise you to get an endowment policy for yourself or your loved ones.

Reasons People buy Endowment and Savings Plans

There are reasons people buy these kind of plans from insurance companies. Among the reasons people buy endowment and savings plans are as follow:

• To cut down unnecessary expenses
• To Save for future projects
• To see what to fall back to in difficult times
• To assure children education
• To live better life
• To plan for marriage

To cut down unnecessary Expenses

Insurance savings plan by Uzochukwu Mike

Base on experience, many people spend so easily in an unnecessary manner when they easily have access to all their funds. When one only has regular bank savings account with debit card linked to the account, it is an avenue for easy access to the funds. In respect to this, you see one easily making withdrawals from such account.

A person can have two thousand dollars in his account today and before you know it, there will be nothing left in such account in a space of one week. Some of these expenses the owner of the account may not be able to account for. That is what is called unnecessary expenses.

With the help of endowment policies, many people now have financial control. They do not spend in unnecessary manner any longer. Once they take the amount of money they want to save out of their accounts into their policies, they spend the rest left in their bank accounts wisely. This is one of the major reasons why many people picked endowment and savings policies from insurance companies. It makes them to be accountable and not to spend on things that are not important.

To Save for Future Projects

Some projects have been concluded successfully because many people are able to save money through life saving plans of insurance companies. As a financial advisor in an insurance company, I have seen that happen. People got their projects achieved because they picked up savings plans from insurance companies and that made them to do so. Their minds were filled with joy when they realized that they were able to do so because of the plans they picked in the past.

Some adults today are able to save and buy their own cars because of the benefit of savings and endowment policy. When the policy matures at the due time, they are paid in lumpsum. With the lumpsum payment, they purchase their dream cars. If not because they signed up for this kind of policy, they might have found it difficult to save money on their own.

Landed property and houses are important. Everyone will be happy to own a house if not today but tomorrow. The truth is that the money used for building of houses is not peanut. Lumpsum of money is needed to do so. With the help of long term life savings policies, many people from different parts of the world are able to raise good amount of money that they used to build their homes today. They started gradually and saved something good at the end. In some cases, interest is even added to them at the end of the saving.

To see what to fall back to in difficult Times

This is another reason savings policies are important. Many people prepare for the hard times because they do not know when they will come. People who are wise do not put all their eggs in one basket. They think ahead and deep. They know how to do checks and balance properly.

There are some policies that customers can have access to after the second year of savings. In this kind of savings plan, if the policyholder experiences any financial difficulty, he can call on the insurance company for liquidation. At that point in time, such customer falls back to the funds he has saved with the insurance company.

This has really helped many customers recover from the financial loss they had sometime ago. Many customers who have endowment policies liquidated their policies and fell back to the money they saved through insurance policies. Do not have all your eggs in one basket. Save up by signing up for any savings plan.

You grow your money when you save through endowment or savings plans

To assure Children Education

Another good thing on buying endowment policy from insurance companies is that it assures children education. Though there are different kinds of endowment policies sold today, education endowment policy is one of the best. Every parent that love the children makes arrangement on time on how to secure the education of the children. The good thing about education endowment policies is that it is not only parents can buy it for their children. Any adult that is of age can buy such policy for any growing children.

Education endowment policies have helped many parents save money ahead for the future education of their children. Many saved gradually for their children until they built money that was enough to send their children to tertiary institutions. At that point, they worry less because the funds needed for their study in the universities have been secured.

Also, buying education endowment policy for children gives the children education insurance coverage. What it implies is that in as much as you buy this policy and pay your premium as of when due, in case of your sudden death, the insurance company takes care of paying the fees of your children in school. This is to ensure that the children complete their school. Depending on the insurance company, some keep paying these fees for a guaranteed period of ten years. This is a good idea on buying education endowment policies from life insurance companies.

Buying Savings Plans as Avenue for better Life

Rome was not built in a day. It took the Romans a lot of time before they get to where they are today. Before they were able to build their empire in the time of the old, they sacrificed much. This made them the world power in the time past and the government enjoyed it.

In the same way, bulk money is power and it can make things happen. The money saved through insurance savings policies are usually bulk money. In the other words they are called lumpsum. Good lumpsum of money can shape the life of the policyholder to good and better at maturity. Nigerians should look into this benefit and sign up for endowment and savings policies.

Can saving with insurance savings plans help anyone in a business? There are many people who are running their personal businesses today and enjoy better life due to the value endowment and savings plans offered to them. They signed up for long term savings plans and through there raised good amount of money. Today, these people are enjoying better profit from the business they were able to establish because they saved with insurance plans.

To Plan for Marriage

How can insurance savings or endowment plans help in marriage preparation? In African Continent, Nigeria to be precise especially the Igbo tribe, marriage is not always easy. It is usually expensive as it takes much money from the celebrants. That is why some people who cannot afford doing the celebration alone solicit for help from friends and relations.

Because of the beauty of savings and endowment policies, many start on time to save money ahead of time. Some picked short term plans for this preparation while some others went for long term plans. At the end of the savings duration, they were happy because they were happy that they raised lumpsum of money that can help them carryout their marriage activities. If you are yet to marry, you can signup for savings plan in any reliable life insurance company to save ahead. You will be happy at the end.