04 Jul The Truth About Insurance Premiums – Why The Joke is on You
Jokes are funny, except when you are the subject of the joke. No one likes being the main character in joke. When others joke about us, somehow, the joke loses its humour. Well, we have some news for you. Whenever you pay your insurance premiums, the joke is on you. That’s because insurance is based on a bunch of maybe’s and as such, you are asked to pay for something you may never need (and in many cases, you will never need to make a claim). We just though you would like know why you are main character of the joke whenever you pay your premiums
Premiums paid are premiums gone
There’s only one thing that’s certain when it comes to insurance. You will pay. Period. All other things are a bunch of maybes and supposes. If you keep paying premiums blindly, you are dealing with a whole lot of maybe’s that may actually never happen. Each time you pay for an insurance policy, take a moment to laugh and remind yourself, that the last time I am seeing that money, and I am never likely to get any benefits from it.
You will always pay premiums
The second point here is this. Provided you are alive, drive a car, want to be in good health, want protection in case you are in an accident, or want to ensure you don’t lose your investments in a house or other property, then know this-you will always pay premiums. Some premiums are required by law- such as for car insurance and WIBA. Others are required by international conventions such as travel insurance. Some of them are smart to have for instance life insurance covers, personal accident covers and home insurance. If you want all these, then you must pay.
Premiums are not investments
Please always bear in mind that there is a difference between paying for insurance and investing. Insurance is a “just in case” plan. An investment on the other hand does not ordinarily lead to an expected loss of your money. Your insurer owes you exactly nothing (not even a thank you) when your policy expires, regardless of how much you paid in premiums. Don’t pay insurance as though you are investing. Just pay for what you need. If you pay more, the joke is on you.
Higher premiums don’t always mean a better cover
You will do well to realize that paying higher premiums for your insurance does not always mean that you are getting a better deal. In some cases, the person who gets to walk home with the benefit is the insurance guy. The reverse is also true. Just because you paid for the lowest premium does not mean that you got a poor cover. In some cases, the difference between two policies is usually just the price of the policy, and nothing else. In these cases, if you pay more, the joke is on you.
How about turning the tables on your insurer? If you buy insurance through Insureafrika today, you will get back Kshs 2000 free for every policy worth over 30,000. The joke has been on you long enough. Its time to get something back!