[ 2017-05-11 ]

Misconception of death hampering growth of life assurance- industry players
Some industry players in the Life Assurance sector
have blamed the low patronage of the service to
misconception and misunderstanding of life
assurance policies.

They argued that there is a negative perception
about life assurance policies as most people think
it is a policy for people who may die soon.


Outlining some difficulties in selling such
policies, the Zonal Manager at Eisich Life
Assurance, Isaac Danso, pointed out that most
Ghanaians are not enlightened on the benefits of
life assurance, hence do not patronize it.

“In fact the perception is up there. Nobody
wants to talk about the death factor but the hard
truth is that it will hit us.

It is just about the mentality.

Some people  don’t even see why in this current
economic situation, they should be having
GHS10,000 or GHS20,000 sitting in their account
for their mother or father to pass so they can use
that for their funeral,” he said.

“They will rather use that money for investment.
So it is just about changing the mindset,” he
added.


Mr. Danso explained that a life insurance policy
is a contract with an insurance company in
exchange for premium payments.


According to him, the insurance company provides
a lump-sum payment, known as a death benefit, to
beneficiaries upon the insured’s death.


Opinion of some Ghanaians 


Sharing her thoughts on the topic, Jemilatu,  a
lady who works with an investment company told
Citi Business News the whole idea of saving
towards one’s death is not right.


“Actually, I am not into the funeral policy. I
am not scared of the death factor, I shouldn’t
be but the funeral policy itself should not be
there.

I don’t think it is advisable for anybody to do
it. For all you know you could even die before
your parents do. That alone should even put you
off,” she said.


Mr. Kyei Mensah, a trader also told Citi Business
News the stress in accessing claims makes
insurance in general unattractive.


“I don’t want it. Usually when time for
claiming comes, you will just be stressed and not
get it. You will have to take a lawyer to fight
for you that is why I am not interested.” he
stated.


Mr. Danso however was however hopeful that
Ghanaians will soon embrace the policy.


“Gradually, the perception is being changed
based on the education. And this is where I
entreat the industry players to step further in
educating the client.

It is just about the perception and at the end of
the day, you realize that you go to talk to people
about life insurance and they don’t struggle to
buy It.” he added.

Source - citibsinessnews.com

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