INTRODUCTON
As has always been said in our various articles or literature on insurance, the main function of insurance is to make provision of protection for probable chances of loss. It is probable loss because, the time and the level of loss at every of such event is always uncertain. And as such, where one is does not have an insurance policy, he suffers such loss alone or personally. But on the other hand, the availability of insurance policy guarantees indemnity for such loss in favor of the policyholder. By the Insurer. we shall discuss best insurance for officers.
THE NATURE OF INSURANCE
The nature of the insurance is to spread losses caused by the existence of a particular risk on many persons who are open to such risk. And who agree to take insurance coverage against such risk.
Consequently, the moment this group of people agree to insure themselves against these unforeseen losses, it affords them the advantage of knowing that there is certainty of indemnity at the happening of an uncertain loss/risk insured against. The uncertainty of happening in a clearer explanation means that they do not know when it will happen. Or whether it will ever happen at all. And if it will happen, there is uncertainty as to the level of loss that will arise when it happens. However, notwithstanding the above, the burden of all these uncertainties is removed from the Insured and placed on the Insurer. And it is him who undertakes certain indemnity in favor of the policyholder at the happening of that loss. In other words, the policyholder will get indemnity from uncertain chances of loss from the insurance company.
HOW INSURANCE WORKS
Insurance Policy is a risk sharing mechanism in the sense that when these risks take place, the losses are shared by all persons who are exposed to such risks. And who have insured themselves against it through the payment of their individual premiums which are polled together to indemnify each other as the risks occur.
In the same vein, Insurance companies also engages in prevention of losses. This is through engagements with several institutions charged with function of loss prevention. And the essence of this, is to see to the reduction of losses which will in turn reduce the indemnity accruable to the Insurer. As well see to the reduction in the amount of premium payable by the Insured.
Flowing from the above, when the amount payable by the insured as premium is reasonably low, it will eventually translate to a boast in insurance business, as so many persons or group of persons will be able to afford premium. And hence buy insurance cover.
Moreover, insurance business assists in the growth of the economy of a nation. Insurance companies usually invest the polled funds from premiums paid by the insured into meaningful ventures. And this operates to generate enough capital base to enable them pay/cater for the losses of the insured. More so, businesses, industries and even individuals benefit from loans made available by insurance companies.
Also, insurance protects the society from huge economic losses. This is because there is a fund in place to replace destructions that arise by certain factors. And this helps to put the area of the damaged economy back within a reasonable time.
THE BEST INSURANCE FOR OFFICERS
In this piece, we shall consider the best insurance service/policy for government officers.
Government officers are the Employees of any Government. And they includes employees or officials of any entity in control of such government. It could also mean a political office holder or his employee or any official employee of International Organization etc. Having said this, we shall discuss the best insurance policy for government officers.
Life Insurance as best insurance policy for Government Officers
Life insurance is a class of insurance policy between the Insurer and the Insured where the former undertakes to pay a certain sum of money to a certain beneficiary in the event of the death of an Insured person.
This class of insurance very important as it makes provision for a lump sum of money payable to the beneficiaries of policyholders upon death. In essence, the company will pay death benefits to the beneficiaries of the policyholder. In the event of his/her death. And this will make funds available to the dependents who rely on you financially.
Life insurance can be Whole Life Insurance which provides for lifelong insurance coverage or a Term Life insurance which covers for a specified period of time.
Flowing from the above, it is safe to say that Life Insurance Policy is the best insurance for a government officers. This will afford the family of a deceased civil servants’ families funds that will sustain and cater for the dependents. And these includes, children’s education, feeding, health care etc. This is more important when you consider the fact that an officer’s work dies with him, unlike business owners whose dependents inherit their business to survive.
Similarly, life insurance policy is a means of safeguarding your family’s future. Especially if you are the breadwinner of the family. The death benefit accruable to the policy will help to keep your family afloat even when you are dead. It provides a huge financial cover for your loved ones. And it equally ensures that there is a financial support available for your family and loved ones thereby making them not to suffer when you die.
In Nigeria, every employer is required by the Regulation of National Insurance Commission (NAICOM) and the National Pension Commission (PENCOM) to maintain life insurance policy in favor of their Employees for a minimum of three times the annual total emolument of the employee. The policy provides cover to the insured against death. See section 9(3) of the Pension Reform Act 2004 (Now PRA 2014).
CLASSES OF LIFE INSURANCE POLICY
Whole Life Insurance Policy.
This class of Life Insurance Policy provides coverage up to 99 years of age. It is different from other forms of life insurance plans which have certain short terms like 10, 20 years. Whole life insurance plan is important when you have financial dependents for a reasonable long period, possibly your entire life.
Term Life Insurance Policy.
This is the most affordable class of life insurance plan. And it is for a shorter and certain period of time. It affords financial security to your dependents.
Savings Plan.
Saving plan operates to combine the effects of the advantage of life insurance plan and investment. It affords you the benefit of securing your family’s financial needs and equally creates a medium to sort out your financial needs at any stage of year life. It stipulates a fixed amount payable to the insured when the policy terminates.
CONCLUSION IN BEST INSURANCE FOR OFFICERS
In conclusion, Life Insurance policy is the Best insurance plan for a government officer. This is because it affords the policyholder peace of mind and financial security. Hence, the policyholder knows at all times that in the event he dies, his family and dependents will not suffer as there is a fund to cater for their needs.
Similarly, some Life Insurance Policy enables you to create wealth. This is as these Insurance Companies invest your premium in worthwhile ventures. And this enables them to deliver superior risk-adjusted returns that beat inflation.
Finally, Life Insurance Policy operates as retirement plans. Retirement ordinarily should be a beautiful time when one is free from work pressures and life ought to be peaceful but these can only be achieved if adequate plans have been made for it. Most people who work in private establishments know very well that there is little or no retirement benefit and as such, retirement may turn to a period of worry than a period people look up to. Fortunately, with adequate life insurance plans in place, there is provision that allows you earn a pension or benefits and live your life to fulfillment.
