For most people, insurance is the least of their priority when there is downturn in the economy, as we are currently experiencing now. So, they give little or no consideration to taking insurance, but hold on to their assets and spent on other things.
But experts say this is high level ignorance as insurance comes handy to help people replace lost assets particularly in a period of economic downturn, when most people lack cash to replace assets, amidst rising cost of living.
Rather than hold onto your assets and rely on what faith presents to you, pass your burden to insurance companies and be rest assured you have your assets fully secured, experts say.
Insurance expert said when an economy is depressed people tend to hold on to their assets because the possibility and cost of replacement is enormous.
So when the economy is depressed, it is important for people particularly the poor do insurance for preservation because cost of replacement is higher. If you have a Mercedes Benz, for instance, you now say that insurance is not a priority if you loss it, perhaps when you bought it, naira was around N159, N160 and now it is N300 to a dollar, the cost of replacement becomes higher. So really, in a depressed economy insurance thrives, though we do not pray for an economy to be depressed so that insurance should thrive, expert said.
“I think the people that are worst affected in a depressed economy are those at the lower end of the ladder, the ordinary people, because their disposable income shrinks therefore they want to prioritize. I think that segment constitute the minority of people who buy insurance, because when you talk about big industries, they are never going to stop insurance at all, the expert further stated.
People need insurance for a variety of reasons. In some cases insurance is required by law; however, there are policies that, though not mandatory to have, do give you necessary protections should you suffer a financial loss. And when you do have an insurance policy, there are certain rights and protections you have which gives you confidence and rest of mind to do your business and live your life without worries. Different stages of your life will require different insurance needs, so it is important to review your policies regularly to make sure you have the best policy to fit your lifestyle.