By Richard Muganzi
You ought to consider a host of things at the start of every new year. Insurance is one of them.
The global insurance market was worth under five trillion U.S. dollars as of 2020, but this looks set to increase substantially in the coming years, according to www.statista.com.
Purchasing/renewing insurance policies at the start of a new year is a smart way to set the foundation for your yearly finances and is also a magic bullet for a substantial increase in the purchase of insurance policies.
Statistically, the Insurance Regulatory Authority of Uganda (IRA) is expecting an improvement in the performance of the Uganda insurance market.
According to data published by IRA, the Ugandan market’s turnover had reached 1.081 billion UGX (278.67 million USD) by 30 September 2022, meaning the premium volume had increased by 18.57% compared to the same period in 2021, thus exceeding the analysts’ forecasts which were expecting a 15% growth- so this year, we are more expectant to rise higher and hit the previous two years.
An insurance cover is a contract between the insured (client) and the insurer (insurance provider). Under this agreement, the insured pays regular amounts of money (premiums) to the insurer and is paid back in the form of claims when an unfortunate event arises.
Insurance plans benefit anyone looking to protect their family, assets and themselves against financial risk or loss, which in most cases results from taking on the financial burden.
Without a shadow of a doubt, you will be secure in knowing that your loved ones, assets and yourself are financially secure from various unforeseen situations.
Purchasing insurance at the start of a new year can be important for several reasons;
Financial security: It doesn’t matter how much money you have saved up in the bank if you are spending it more on damages caused by unexpected events such as illnesses, fires, burglaries, or even sudden death, etc.
The good news, however, is that insurance is your safety net for financial security for yourself, your family, and your assets.
Transfer of Risk: An insurance contract works on the ‘principle of transfer of financial risk from the insured to the insurer. As the insured, premiums are paid to receive compensation from the insurer should you be met by an unforeseen contingency.
Insurance, therefore, takes off the load of the financial burden, so you don’t have to worry about the future.
Complete protection for your household: Family is your most critical asset, and they depend on you for financial support, especially in the event of sudden death or a medical emergency.
Ensuring that your family is entirely secure in any emergency is vital as it will help them maintain their usual standard of living, enabling them to cover household expenses and other related expenditures.
No more stress or tension during difficult times: Sudden tragedy can leave you physically, mentally, and financially strained. However, if you are fortunate enough to have insurance to cover the outcomes of catastrophes such as illness, accidents, permanent disability, or even death, you are saving yourself a great deal of stress and instead allowing yourself more time to recover.
Peace of Mind: The financial security that insurance offers is vital to your peace of mind. You can be rest assured that you are secure against tragedy when you purchase insurance.
Save better: Insurance is a great way to build wealth and save for the future through the different savings and investment schemes that several insurance plans offer.
If you haven’t already, consider investing in an insurance policy for your health, family or business, or renew existing insurance policies that you already have in place and the rest will be history.
Have a prosperous 2023!