In the highs and lows of daily living, human beings are constantly in search of ways to make their lives more liveable. Those who earn the current national minimum wage of 30,000 naira look for other ways to augment their salary. Some do farm work around the home, some do petty trading, and so on. Even those who earn far higher look for other sources. Some, especially ladies, sell assorted items – shoes, bags, perfumes, etc. – to their colleagues at their workplace. The new lingo for this is side hustle. The ultimate goal is to increase income and be able to afford much more than they can afford at the moment.
All of these efforts are valid. Everyone deserves the good (or, at the very least, the basic) things of life. But people of today’s world speak increasingly of smart work in preference to hard work. For instance, why pound your tomato and pepper fruits in a mortar when you can simply wash and pour everything into a blender? In other words, whereas it is often said that when costs go up, you either cut down on your expenses or increase your income – and I totally agree with this – what if there is another way? Or, rather, what if in addition to the above, there is a way that guarantees you access to some of the basic things of life without always having to dip your hand in your pocket?
Truth is, getting an alternative way of sorting out some financial needs can never be over-emphasised. It always feels so good to take care of your financial needs without having to pull all of the fund or a greater portion of the fund from your pockets. This is even more so at a time like this when the economy of our dear country Nigeria (some say it’s a global phenomenon) is going through perilous times.
Let me take you, dear reader, through some points that can be of great importance to you as you navigate these hard times. First, consider a situation where one falls ill but there is no money at home or anywhere to procure basic care. Also consider another scenario where, despite the unavailability of fund, there is some way of getting quality and responsive health care without having to pay all of the cost out of pocket. That is what a health insurance scheme guarantees: getting a quality health care coverage that is designed specifically for you and your family members whenever you need it. All you need to do is subscribe to a health insurance plan. This, in most cases, is open to those in both the formal and informal sectors. In some states, like Edo, it is compulsory for all civil and public servants. The state has further enrolled retired civil servants and members of the security network. Once an enrollee falls ill, or is diagnosed with a health condition, the Health Maintenance Organisation (HMO) steps in to coordinate your care and pay the bills, or a greater percentage of the bills, ensuring that you get well without having to break a bank.
No doubt, the high cost of living in the country has diminished the disposable incomes of households. As such, whatever we can do without today will have to be postponed till next time. But often, that amounts to merely postponing the evil day. Let’s say a family has lost a dear one, maybe a grandfather or grandmother, and there is no money at hand to do the needful. For how long will the family postpone the burial of a dearly beloved one? Sometimes people go borrowing or resort to selling off property. But what if they were smart enough to consider an insurance cover that is designed to take care of financial expenses in the event of death of a loved one? Would that not make things easier for the family?
Several insurance companies in Nigeria have funeral insurance plans that can cover several people in the family, some up to a maximum of 14 people – the insurance holder, spouse, parents, parents-in-law, uncles, aunties, step parents, etc. The name of the plan, however, varies from company to company – Sunset Benefit Plan, Life Celebration Plan, Family Shield Plan, Family Care Plan, Family Benefit Plan Plus (FBPP), and so on.
There are several other ways of living smart using insurance cover. We will explore more of those ways in the next edition. Meanwhile, enjoy your weekend and think smart as you enter the month of June.
Queen, a personal finance advisor, can be reached via [email protected].
