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Life Insurance; How Does it Work?

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Many insurance companies offer a life insurance policy. In fact, this is the most elementary type of insurance policy. The policy aims at securing the future of your family in event of your death. The principle defining this type of a cover is quite simple to understand; you purchase a policy and pay premiums at regular intervals such that in the event of your death, a lump sum amount is handed over to your beneficiary. A life insurance policy can be purchased for self or for someone else. Typically, life insurance mandates some sort of agreement between three parties – the insured, the insurer and the owner. The person whose life is being insured is referred to as the ‘insured’. The insurer is nothing but the insurance company. The owner is the person who actually buys the policy. The owner and the insured could be the same or they could be two different people. If you were to purchase a policy for self, then you would be the owner as well as the insured. If, however, you buy it for your partner, then the partner is the insured person and you are the owner. If you are the owner of a policy, it is your responsibility to pay premiums at regular intervals.
A life insurance contract involves another important member – the beneficiary. A beneficiary is the person who benefits from the death of the insured – the lump sum amount becomes payable to him or her in event of the death of the insured person. There are two types of beneficiaries, the irrevocable one and the revocable one. The revocable beneficiary can be changed at the will of the owner while the irrevocable one cannot be changed unless and until the permission of the beneficiary is sought. A life insurance policy is subject to many terms and conditions. Most policies will come along with certain exclusions. Exclusions are certain conditions, which, if satisfied, will absolve the insurer from making any payments that would otherwise have been made. In most of the policies, suicide in the first two years of the policy term is not covered.
In the first two years of the policy period, often referred to as the contestable period, the insurer reserves the rights to make an immediate pay out. In event of death of the insured, the company may stop payment and conduct investigations of its own. These investigations aim to ratify the cause of death. If it is discovered that death was deliberate or a result of homicide, then the insured is relieved from paying the lump sum amount. The amount to be handed over to the beneficiary is known as the face amount. This is usually paid in the event of the death of the insured or upon the attainment of a certain age by the insured.  The date when the amount becomes payable to the beneficiary is known as the maturity date. A life insurance policy is more often than not, a sort of protection for the spouse of the insured in event of his or her untimely death. To purchase an insurance policy, the owner of the policy must have an insurable interest. Insurable interest is a reason to secure the life of a person. Insurable interest is an important consideration that determines the unassailability of a policy especially when the owner and the insured are not the same. In the absence of the same, a policy is declared as invalid. When a person dies, a solid proof of the cause of the death has to be handed over to the insurance company in order to claim the policy benefits. In most cases, a notary’s signature on the death certificate is an accepted form of proof. The benefit could be paid in one go or an allowance is paid at regular intervals. This guarantees the beneficiary some sort of monthly income for the rest of his or her life. There are two types of insurance policies, the temporary one and the permanent one. The temporary insurance or the term life is a cover that insures a person for a fixed period. For instance, a 20-year term life insures a person for a period of 20 years. There are two types of permanent insurance policies: the whole life and the universal policy. In the whole life policy, the person has to continually pay premiums not minding how long he lives. If he passes away, the payout will be done at whatever age. The Universal policy on the other hand is a bit more flexible with more flexibility in the payment of premiums. So it is advisable to consult an agent or a broker before buying any of these insurances.

 


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CBN Pulls Rate Cut Trigger, King Dollar Returns

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By Lukman Otunuga, Senior Research Analyst at FXTM,

In a move that caught investors off-guard this week, the Central Bank of Nigeria (CBN) slashed interest rates by 100 basis points bringing the MPR to 11.5%. Given how inflation has been above target since 2015, rates were expected to remain unchanged for the rest of 2020 and possibly early 2021.

 

The question on the mind of many is whether the rate cut will achieve the desired effect by stimulating consumption and economic growth? Ongoing border closures and disruptions created by COVID-19 have pushed inflation to levels not seen since March 2018 above 13.20% while a drop in the production and price of Oil continues to rub salt into the wound. While looser monetary policy could support growth, it may come at the cost of rising inflation and weaker Naira.

 

Over the past few months, central banks across the globe have deployed unprecedented measures to defend their respective economies against the coronavirus menace. However, fiscal policy has been identified as the sharper tool with governments across the world providing a critical lifeline to keep the wheels of their respective economies rolling.

 

Outside of Nigeria, King Dollar made a return by appreciating against every single G10 currency. In times of uncertainty, everyone wants a juicy piece of the world’s most liquid currency. As coronavirus cases rise in Europe and other parts of the world, the flight to safety is likely to boost appetite for the Dollar. This is bad news for many emerging markets currencies, especially those with high Dollar-denominated debt.

 

On the commodity side, Oil prices remain heavily influenced by demand-side factors and the state of the global economy. Prices are likely to remain stuck around the $40 regions in the near term, especially If another round of possible lockdowns hit Oil demand. Looking at the technicals, WTI Crude is under pressure on the daily charts. If prices are unable to break away from the sticky $40 regions, the next key point of interest remains around $38. A weekly close above $41.50 could pave a path towards $43.


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NCC Arrests Man for Hacking into DSTV System

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Nigeria Copyright Commission (NCC), has arrested one Mr Aliu Olalekan, for allegedly hacking into DSTV system and watching the channels free without subscription.

NCC Arrests Man for Hacking into DSTV System

Mr Matthew Ojo, NCC Director in the Lagos Directorate Office said this while speaking with newsmen in Lagos, on Tuesday.

He said that the suspect used to watch DSTV channels free without subscription on his Android phone via an app which he downloaded on google play store.

“This suspect distributed the know-how to his telegram followers and on his blog with the aim of gaining more followers and viewership on his blog and makes more money through google ad-sense.

“The operation was based on surveillance which had earlier been carried out by the Multi-choice team and verified by a copyright inspector, ” he said.

He added that the arrest was made in collaboration with a team of copyright inspectors led by the Head of Enforcement Department, Mr Charles Amudipe.

Others included; a team from Multichoice Nigeria led by Mr Umar Ibrahim and policemen from Lagos Command Headquarters, Ikeja.

Ojo said that the joint team conducted an anti-piracy operation at the premises of the culprit in Amukoko, Lagos.

According to him, the suspect was contacted on phone by a member of the operation team on the disguise of patronising him. “The suspect came out to meet the caller and in the process of discussion, he was apprehended.

“The suspect took the team to his resident. The squad paraded his one-room apartment and recovered his laptop and phones used in perpetrating the ungodly act. “He was arrested and brought to the copyright commission office for further investigation, ” he said.

Ojo said that, on getting to the commission’s office, the statement of the suspect was taken and the inventory of items seized from him taken. He said that investigation on the matter was still ongoing and if found guilty the suspect will be charged to court.

 


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NCC, Digital Encode Support NITRA Innovative Tech Forum On Post-COVID-19 Strategies

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The Nigerian Communications Commission (NCC), Nigeria’s telecommunications regulator and Digital Encode, Cybersecurity and Compliance advisory company, have indicated interest to partner with the Nigeria Information Technology Reporters Association (NITRA), the national umbrella body of ICT reporters, as it organizes a forum that will x-ray the industry’s future plans for ICT growth post pandemic era.

 

The event, slated to hold on October 15, 2020, will seek to discuss the needs for a fortified ICT sector after the COVID-19 era, and the level of preparedness of ICT stakeholders to embrace the challenge of being pivotal to the stability and growth of all other sectors.

 

A statement from NITRA National Secretariat in Lagos indicates that due to the pandemic and need to observe the COVID-19 protocol on social distancing, the event will be held via a Webinar.

 

This year’s theme, “Multi-stakeholder Approach To National Recovery Post-Pandemic”, is in line with the annual event’s generic theme, ‘NITRA Innovative Tech Forum’, a contribution by NITRA to the development of Information and Communication Technologies (ICTs) innovations and policies in Nigeria.

 

Prof. Umar Danbatta, executive vice chairman, NCC is expected to deliver the keynote speech at the event and will throw more light on Federal Government’s plans, programmes and policies on post-pandemic strategies using ICT.

 

Dr. Adewale Obadare and Dr. Seyi Akindeinde, founders of Digital Encode, while accepting to support the event expressed their readiness to offer their expertise in Cybersecurity for organisations to prepare against cyber- attacks with the new normal.

 

They will also highlight areas that are high risks that need fortification in terms of cybersecurity.

 

Speaking on the event, Mr. Chike Onwuegbuchi, national chairman, NITRA, noted that as the COVID-19 pandemic continues to leave its negative trails across the globe, economic reboot for countries will not only depend on how well they readapt to the new normal, but also more on their recovery plans.

 

According to him: “While the federal government has consistently expressed its willingness to set all policies in place to engender growth, and accelerated implementation of these policies, private sector firms have also shown great hunger for the task ahead in post-COVID-19 era.

 

However, the question that needs to be answered is whether all stakeholders are ready for the required task ahead.”

 

The event will also offer participating companies opportunities to publicize some of their individual efforts at contributing to reacting a soft landing or lifeline for SMEs and other ancillary companies as the pandemic threatens their survival.

 

Digital Encode is a multi-award winning and leading consulting and integration firm that specializes in the design, management, and security of business-critical networks, telecommunications environments and other Information Technology (IT) infrastructures.

 


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