Hello, everyone. Today, I want to address a common sentiment I often hear: “Tamara, I have a number of investments and savings in banks, SACCOs, and properties. I don’t need insurance. I’m sorted.” Why insurance, you ask?

Let me share a story with you. In 2016, I met Mr. Antony Bosco, a successful medical doctor in Nairobi, Kenya. Antony had a clinic in the city, managed by his wife, also a medical doctor. By 2017, Antony had started a dental clinic in New Jersey, USA. He and his wife were blessed with three young children.

Antony’s family was relatively wealthy, living a comfortable middle-class life. He was considered a promising doctor. We talked about insurance, investments, and retirement planning. Despite my efforts, Antony only purchased professional indemnity insurance, third-party car insurance, and travel insurance. He didn’t see the need for education policies for his children, thinking his savings and investments were sufficient.

By 2019, I finally convinced Antony to buy an education policy for his firstborn. We planned to complete the paperwork in March when Antony and his wife were visiting Kenya. Tragically, on March 10th, 2019, Ethiopian Airlines Flight 302 crashed. Antony and his wife were on board. They left behind three orphaned children with no education plan in place.

The clinic was eventually sold by Antony’s brother, who struggled with alcoholism. I don’t know if the children are okay or if they are in school. What I do know is that had Antony bought education policies, his children’s futures would have been secure.

Why life insurance? In my years as a financial advisor, I’ve seen life insurance as a cornerstone of a good financial plan. Without it, your financial strategy may crumble in the event of untimely death. Those with dependents, dangerous jobs, and joint financial obligations especially need life insurance.

Do you have insurance cover? Have you ever wondered if it’s necessary? Do you understand what you are covered for? The simple answers are:

1. Yes, you need insurance cover. It’s very necessary.
2. You need to understand what you are covered for.
3. You need to know the needs and benefits of insurance to make an informed decision.

Insurance operates on the principle that losses and misfortunes can occur at any time. It’s better to plan for a rainy day to manage the impact of a loss. Traditional Kenyan societal setups pooled resources to help those in need, but this practice isn’t sustainable today, highlighting the need for individual insurance covers.

You need insurance because losses and misfortunes occur unexpectedly. When incidents like fires, sicknesses, motor accidents, and deaths happen, you’re often unprepared for the financial consequences. People resort to fundraising or borrowing from friends, who may also be short of money. Sometimes, families sell assets at throwaway prices to pay for emergencies. Insurance can’t stop these events, but it can cushion you financially.

Life is full of uncertainties. By buying insurance, you transfer possible financial losses from yourself to an insurance company. While you can’t avoid life’s misfortunes, the right insurance policy ensures financial recovery. To appreciate insurance’s importance and choose the right cover:

1. Identify your risks and needs. Not all risks are insurable, and your insurance needs are specific to you. Don’t buy a policy just because your friend did.
2. Discuss your risks and needs with an insurance company, broker, or agent. Compare policy benefits and premiums before settling on one.
3. Match available insurance products to your needs and choose the one that best meets your needs at an affordable cost. Understand the policy fully before purchasing.

Peace of mind is a significant benefit of insurance. It protects your family and assets, providing financial security, savings, and tax relief. Your health is your wealth. Sicknesses strike without notice; consider buying medical insurance. Education is becoming increasingly expensive; consider a policy for your children’s education. Accidents happen anytime; consider a personal accident cover.

Insurance isn’t an investment. It’s not comparable to bank or SACCO savings. Insurance is assurance, and that’s exactly what you need.

For more information, get in touch. Thank you.