Insurance, Assurance or Indemnification – How much is enough?

We all have different names for it, but it all boils down to the same thing. No matter what name we assign to it or choose to call it, it’s of no use if it doesn’t accomplish it’s purpose. The most popular types of insurance today are auto, home, health, life, property, mortgage, pet and travel. With all the uncertainty and unpredictable happenings  around the world today, more insurances have resurfaced; from divorce, earthquake, longevity, body parts insurance and much more. If we have to insure everything in our possession, we would barely have enough to meetup with the things that matter the most. In Alberta for instance, whether you rent or own, we all need to purchase tenants or homeowners insurance to protect us from flood, fire, water, theft etc.  It all depends on one’s need, cost and priorities. No one wants to envision themselves and or loved ones as victims of an unfortunate situation or being caught in a  difficult circumstance, wherein you have to make hasty decisions. We all know decisions made at the peak of events are hardly great. The truth, however, is that we can’t escape from these unfortunate events as long as we remain the occupants of  Earth and therefore must have a backup plan or plan B if you prefer. As children of God, our only true and secure plan is trusting, believing and holding onto the Cross of our Lord and Savior Jesus Christ. I am by no means saying that it’s an insurance policy against pain and suffering but what I’m saying is you are comforted by the presence of the Father and it lessens the burden.

With so many things at stake and family members scattered all around the globe it’s only fair to make our wishes known, and ease the financial burden for our family and loved ones before the unexpected happens. Afterall, death is inevitable – hopefully is not premature and it doesn’t take us unaware. As a business major, and a finance inclined person or as my husband always puts it “Ibo blood” I found life insurance very useful in covering funeral cost, paying off debts, replacing income, inheritance, and offers some financial security to the deceased family. It also offers some peace of mind to the deceased and sets a precedence for future generations.

As a college student in New York, I came across friends who were well to do, had no problem paying their tuition or other college expenses simply because they inherited a whole lot of money from their parents/relatives through life insurances. It got me thinking about my own family members that were taken from us just too soon. Sooner than they have had time to make a mark for themselves. Life insurance doesn’t fill the emotional void or replace these individuals but lessens your worries. I saw life insurance as a cash cow, or as the Bible puts it; “Greater love has no one than this: to lay down one’s life for one’s friends. John 15: 13. The untimely events of my family members created an urgency in my life and also brought me to my knees to trust God and God only.

At the age of twenty-two, I bought a term 10 life insurance. Some people thougSAM_2609ht I was crazy and too young to be thinking of such, but I thought I was being a smart cookie.  After five years into the term, I conducted a thorough research and realized that though term insurances are reasonable, affordable, and cost-effective, the drawback is even more alarming, and need to be investigated properly.  Once the term is over, the contract is automatically terminated – the monies paid during that period is erased, obsolete or gone for good – as if it never existed. With my newly found information I knew exactly what  I had to do the next time I was faced with a life insurance decision – knowledge they say is power and I concur to that. I didn’t just stop there, but I decided to go in depth as the years went by.

The funeral cost in North America today is more than ten thousand dollars and for immigrants like us who will prefer our remains to be transported back to our home countries, the cost ranges from twenty-five thousands and up. I have noticed that when most people purchased life insurances, they go for the bare minimum, not taking into consideration their mortgage, credit card debts, car loans, line of credit, kids education and their family upkeep.  To buy life insurance is one thing, but to buy the right amount is another. To be sure you have your investment working for you and not the other way around, when purchasing life insurance, think permanent not term. There are different types of permanent life; whole, universal, and variable life. It’s also advisable to sort the services of a financial planner to make this very important decision. The good part is, you can have your life insurance  reviewed on a yearly basis and make modifications to accommodate or eliminate unnecessary cost. On a general note,  do your research, ask the right questions, talk to your spouse, minimize your spending and lay out the proper foundation for your children.  Just because you are married, it doesn’t necessarily mean you should have a joint life insurance. Remember, money brings out the worst in people, so be careful with the kind of information you share to outsiders – yes even family members. Trust all but not the evil in them!

As we already know, nothing good comes easy. Permanent life insurance can be very costly taking into consideration the health situation and age of an individual – the earlier and younger the better and inexpensive it will be. Another way to cut cost is by combining a term insurance with a universal insurance – known as underwriting.

All hope is not lost because there is something that is free, 100% guaranteed and everyone is accepted irrespective of their medical status. That is Salvation! There is Hope in Jesus Christ my friends. His hands are always wide open and His ears ready to suck in our worries. There is no hidden cost, no one-hundred questions to answer, no increase in premium if you are a smoker or heavy drinker, and definitely no rejections. All that is needed is come as you are, believe in your heart, confess with your mouth that Jesus is Lord, and take up your Cross daily and follow Him – and He will take it from there. We can be rest assured our death benefit would be an Eternal life with the Father in Heaven. Still not convince? Just dial JESUS SAVES and He will back my wordings. “Therefore go and make disciples of all nations baptizing them in the name of the Father and of the Son and of the Holy Spirit, and teaching them to obey everything I have commanded you. And surely I am with you always, to the very end of age.” Matthew 28:19-20.

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