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Drawing line between Term, Life Insurance and Assurance

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Life insurance is quite popular among the classes of insurance in Nigeria. Popular as it may be, most people including those who are into any form of life insurances do not know the difference between life insurance and life assurance. Unfortunately, the industry is not still playing the needed awareness creating role that is expected of it. Many players even in this global age are yet to fully adopt modern technology in doing the business, preferring to stick tenaciously to the conservative pattern which held the industry captive for decades. People spend much money on complicated financial products and it is sometimes difficult to track which of these products they keep the tasks to perform. Knowing the basic information of your expected type of coverage, would help to guarantee informed buy. This neglect could cause disagreement between insurers and the insured, with consumers buying overpriced products that may not be suitable to their needs simply because they feel they should have some financial protections, without having knowledge of details of their choice.
One of the most frequently asked questions in relation to many consumers is the difference between insurance companies and policyholders. Simply put, insurance companies cover the cost of an event that happens as long as the policyholder pays the needed premium in the occurrence of an event that could certainly happen. One thing about this type of insurance is that the insurance company only pays once or a certain time in the occurrence of the insured event. Therefore, if no claims are made within the period the policy is made, then they have no residual value.
But for an assurance policy, it is different. One notable feature about an assurance policy is the guaranteed payment. Assurance policies always pay off. For example, life insurance generally pay at the death of the insured or upon reaching the age of 65 years of age. How does this policy work?  Assurance policy combines two elements. That is an insurance element that will pay off when the person dies early. This is then used to pay for the funeral or the support of his family. But then there is an additional payment each year and that is the investment portion. The insurance company invests this part of the premium on behalf of the insured and upon reaching the age of 65 this money is then paid out to the insured. Life insurance policies are therefore often referred to as a method of life and as a method of saving for retirement.
It may not be easy to withdraw cash early from the investment portion of life insurance, although it is possible in principle. However, there are usually some penalties attached to this. It is advisable not to cash in early if you do not have strong reasons to do so. The distinction between insurance and assurance is also more and more blurred. Some insurance companies offer both types of policies or functions as a new kind of policy added to another in order to make them more attractive. Important as this distinction may be, it is important that the insured knows know what it is and also demand to know what type of facilities are available for the insurance of your life and provision for the future.On the other hand, Term insurance is the most common in life insurance. It is one of the several types of insurances that cover the insured only for a certain defined time. The term of the insurance stipulates that that is the only time to pay the insurer as the need arises. It is the most common in life insurance. Term insurance is also one of the cheapest ways to insure. But what makes this the right choice?
This class of insurance is used by many. It is one of the cheapest ways to stay insured. The operation is simple. You pay for the insurance, like any other insurance. Under this cover, if the insured dies during the period that the policy is in force, the insurance company will pay as the policies described. But if the person dies after the expiration of the insured term, then the insurance company is not likely to pay, as the insurance covers only the death that occurs during a stated period.
Why would anyone want to take this kind of policy?  The fact is that this type of insurance has some advantages, especially when you consider why you need insurance in the first place. If the insured dies, there is provision that could cater for the family left behind.
It is important that the insuring public make careful choice having understood the different provisions of these classes of insurance. The decision as to whether this is the right kind of insurance for your needs is necessary. It takes a lot of understanding, but understanding the difference between each type of insurance would be of immense help to the insuring public.

 

 

 


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AfDB Appoints Dr Babatunde Samson Omotosho as Director of Statistics Department

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African Development Bank has appointed Dr Babatunde Samson Omotosho, an economist and statistician, as Director of the Statistics Department, effective June 16, 2024.

Dr Babatunde Samson Omotosho

Dr Omotosho, a Nigerian national, has more than 21 years experience in developing data strategies to align with the strategic objectives of organisations. He also brings expertise in data compilation, data analytics, macroeconomic research, and policy analysis.

Omotosho previously served as Director of Research and Statistics at the West African Monetary Agency (WAMA) in Sierra Leone, where he was seconded from the Central Bank of Nigeria. At WAMA, he provided advice on monetary and economic integration within the Economic Community of West African States (ECOWAS).

Prior to that he held various positions within the Statistics and Research Departments of the Central Bank of Nigeria.

As an Assistant Director in the Statistics Department, he led the data analytics team and managed the Central Bank’s strategic initiatives on big data and data analytics. He oversaw projects aimed at enhancing data analytics capabilities for policymaking, automating surveys and statistical systems, improving data sharing infrastructure and developing social media listening tools. His leadership fostered a culture of data analytics within the Central Bank, driving innovation and efficiency in operational and policy processes.

Dr Omotosho holds a PhD in Economics from the University of Glasgow, United Kingdom (2021); a master’s degree in Applied Statistics and Datamining from the University of St Andrews, United Kingdom (2011); a master’s degree in Economics from the University of Benin, Nigeria (2008); and a Bachelor’s degree in Economics from the University of Ilorin, Nigeria (2000).

He has contributed extensively to academic literature, with publications in reputable journals, including the Journal of Economic Dynamics & Control, Journal of International Money & Finance, Macroeconomic & Finance in Emerging Market Economies, and the Central Bank of Nigeria Journal of Applied Statistics. His research covers big data, econometrics, monetary and fiscal policy interactions, business cycle drivers, and the macroeconomic implications of resource shocks for small open, emerging economies.

Omotosho is a member of the Nigerian Statistical Association, the International Association for Official Statistics, and the Royal Statistical Society.

Commenting on his appointment, he said, “I am grateful to President Adesina for this appointment, and I am excited about the opportunity to contribute to the continued success and growth of the African Development Bank Group, an institution that plays such a pivotal role in the economic and social development of our beloved continent, Africa. I am fully committed to fulfilling the responsibilities of the position while collaborating effectively with the Bank’s senior leadership team, colleagues, and other strategic partners.”

Dr Akinwumi A. Adesina, President of the African Development Bank Group, commented: “I am pleased to appoint Dr Babatunde Samson Omotosho, a respected statistician, as Director of the Statistics Department. Dr Omotosho brings to this role an impressive track record in statistics, economics, and data analytics. He will support the Bank in building a robust data ecosystem to achieve our strategic objectives and sustain our long-term development goals.”


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ATII Awards Scholarship to Students

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A knowledge transfer and technology innovation hub, African Technology and Innovation Institutes (ATII) has awarded scholarships to ten pupils from Bridge International Academy, Lagos.

Through its Junior Scholars Program in partnership with Lumina Educational and Empowerment Foundation (Lumina), the scholarship will meet the educational needs of the benefitting pupils through their primary education, which is extendable to their university education.

The Junior Scholars Program is an offshoot of  ATII’s  Innovation, Leaders, Fellowship and Scholars Program that aims to empower and cater to the welfare of students aged 3-12 years from underprivileged and low-income communities by partnering with other organisations to provide scholarships for these rough diamonds.

In addition to the scholarship, ATII also provides STEM-based back-to-school kits and other Science, Technology, Engineering and Mathematics (STEM) materials to spark their desire for education and to contribute to their communities in STEM-related fields.

In her congratulatory message, the Founder of ATII,  Prof. Rose-Margaret Ekeng-Itua represented by Mr Sunday Awolowo, ATII’s Programs Manager, praised the students for their “outstanding academic excellence” and their “resolve to continue to improve in their academic pursuits, especially in the STEM fields.”

“We hope that the scholarships will continue to encourage you to do great work to pursue STEM. We hope one day in the future you all will be inspired to be an Engineer, a technologist, a mathematician or scientist,” Prof. Ekeng-Itua said.

The ATII Junior Scholars Program is designed to encourage and support students who are interested in pursuing careers in these fields.

Mrs Ezinne Tochie-Asogwa, Manager of Academics at Bridge International Academy, expressed her appreciation to ATII for the generous gesture.

“On behalf of the management and staff of Bridge International Academy, we appreciate the kind gesture of ATII.

ATII is passionate about the next generation of leaders and individuals who will change the world, pursuing its mission to promote African and Indigenous Technologies, while supporting human capital development in alignment with the UN Sustainable Development Goals.

The ATII scholarships will provide financial assistance to the students as they continue their education in STEM fields. The program will also provide mentorship and support from ATII professionals.

 


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CBN, FintechNGR Chart the Way Forward to Enhance Nigeria’s Fintech Ecosystem

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In light of recent developments aimed at strengthening Nigeria’s fintech sector, Ade Bajomo, President of FintechNGR, led a team from the Association’s Governing Council in an engagement with the Central Bank of Nigeria (CBN) to chart the way forward.

Receiving the team at the CBN headquarters in Abuja, Philip Ikeazor, Deputy Governor, Financial System Stability, commended FintechNGR’s active advocacy efforts that have significantly improved the fintech ecosystem.

The Central Bank emphasized the need for the Association to work closely with stakeholders to operate within regulatory provisions, facilitate compliance, and establish robust risk management frameworks and governance structures.

Mr. Ikeazor stated, “The Central Bank understands the critical roles of fintechs in driving financial inclusion to the last mile. Our efforts are geared towards helping fintechs become more attractive to investors and achieve greater success.”

During the meeting, Ade Bajomo noted that while stakeholders strive to comply with regulatory requirements, they sometimes face challenges beyond their control.

“The common understanding within our ecosystem is that compliance makes the environment safer for all to innovate, scale, and collaborate. FintechNGR will ensure the co-creation of a support structure with the CBN to enhance compliance.”

Some of the initiatives the regulators plan to pursue with the ecosystem include making the 2024 Nigeria Fintech Week more impactful, enriching the activities of the Regulators Forum, organizing fintech learning series for various stakeholders, and exploring self-regulation status for FintechNGR to foster closer relationships with regulators.

FintechNGR remains committed to working with all regulators to better position the ecosystem to be more inclusive and impactful.

 


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