My Top 5 Insurance inquiries at start of 2023

My Top 5 inquiries at Start of 2023.

1.??????NHIMA Vs Private health Insurance: Why should we pay for our staff when NHIMA is already getting from us?

I am glad to note that more employers are willing to sign-up and get additional benefits for their workers. It is good to note realization of the need for enhanced employee benefits. Today, employee benefits are a fashionable component of good jobs and health insurance is on top of the list. Following a long debate, I had with one of the country’s largest mining employers, we settled on my stance, that despite contributing to the universal arrangement, he agreed to continue a private plan where he would get a better unitization benefit, dedicated service, wide range of facilities and obviously better client experience. Besides, he would have a specified and desired level of utilization compared to the standard government-structured benefit.

To all my HR connections reading this, kindly take a step and decide to have a private health insurance plan for your people. It will not only benefit your staff but also cushion the strain the national scheme is progressively encountering as its utility is expanding day by day. This duo cover has a positive effect on employee satisfaction, economic GDP and provided enhanced access to medical care for your entity and the country at large.

2.??????Pension Scheme Set Up: What to do with employees who have served longer past years.

Definitely an employer has a past service liability and arrangements must be made on how to liquidate them. Commonly, employees would choose to be paid-off and opt start-up fresh retirement savings which somehow are less prudent.

I strongly recommend you obtain professional advice before employees are engaged in order for available options to be floated and most especially guarding a financial strain arising from the liability.

Pension provisions become more substantial when they have been accumulated over longer employment periods. I strongly advise that any determined past service pensions liability must be transferred to a new scheme.

3.??????Poor Customer Service: Why are insurance companies not caring about their customers?

Very complicated stories here…! I must commend the invoking of the soon to come Market Conduct Regulation (2023). This important aspect of business must hold a good weight in every Insurer’s strategy and never to be placed low. Client experience has had a very high (but unseen) influence on low insurance penetration in Zambia and other markets.

4.??????Early Redemption of Endowment Maturity: Why can’t I pay off the premiums and get my maturity now?

Majority of endowment plans in Zambia are children education policies. They guarantee a Sum at maturity in exchange of somehow very little premiums paid to the end of the policy term.

Unfortunately many insurance agents have sold this solution as a savings plan and not a life assurance plan. Typically, these education policies are protecting the future of a child if their parents (assured lives) passed away or suffered disablement before the end of an insurance period. Such losses would entail the child not having a sponsor for their future welfare. However, the insurer promises that should the insured lives survive the period, Sums Assured would still be paid to them as maturity benefits. This is the main reason why premiums can not be upfronted for an early redemption of benefits. I strongly recommend Prudential Life Zambia’s Smart Child Education Plan. I have no doubt it is the country’s most easily understood child education policy and obviously unmatched ‘hot cake’.

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5.??????Life Insurance Vs Savings: Why can’t I just save for myself than pay for my death?

As much important as saving for yourself, there is need to consider the welfare of those who depend on you while you are still alive. Imajin children, what would they depend on if you were to live them unexpectedly? You may have good savings, unfortunately they will not be used appropriately as a Trust Benefit compared to an organized probate will with clearly nominated beneficiaries. Also, it is important to know that life insurance is not a saving on its face value, but a little premium subscribed in exchange for a much larger benefit. Today a middle-aged adult can secure a life benefit of a million Kwacha for as little as thousand’s premium.

These were my top five inquiries from the insurance customers and my human resources network. Please reach out secure your future. Planning is the foundation of tomorrow.

Vj – March 2023